Making voluntary PRSI Contributions

[picorette]

I am self employed and my income was exceptionally low last year, due to various reasons. As it was below PRSI limit, I am not liable to pay Class S PRSI contributions for the year.

What are the benefits of making voluntary contributions ?
And how much would I pay voluntarily for this?

Thanks

 

[Gervan]

Firstly, do you qualify to make voluntary contributions?

In order to be admitted as a voluntary contributor you must:

‑ have at least 260 weeks PRSI paid under compulsory PRSI in either employment or self‑employment, and

‑ apply within 12 months after the end of the contribution year* during which you last paid compulsory PRSI or had a credited contribution ('credit').

‑ agree to pay Voluntary Contributions from the start of the contribution week after the week in which you last paid compulsory PRSI or had a credited contribution.

If you do qualify, the amount payable is €253 to cover the year.

This will count towards your contributory pension, see http://www.welfare.ie/EN/Topics/PRSI/Pages/volcons.aspx

Under proposals to link the contributory pension to years of contributions, with 30 years providing a full pension, that €253 contribution will bring you a return of €230.30 x 52 / 30, or €399 using current pension rates.
You would pay the €253 when submitting your form 11 for 2011.

 

[Black Sheep]

As you are not liable for compulsory contributions you can become a voluntary contributor, here's how

To become a voluntary contributor, you must complete application form VC 1 and return it to:
Voluntary Contributions Section
Department of Social and Family Affairs
Cork Road
Waterford.
Telephone: (051) 356000
(01) 7043000
Fax: (051) 877838
e-mail: [email protected]