# PRSI question: AL or A1



## robinvn (25 Feb 2010)

Something odd going on here: my payslip shows that my January salary increase is actually costing me money: I take less home than before the increase.
I found out it is because of the PRSI: if my annual salary was 250 euro less, I would still be on A1, whereas now I'm on A2. This costs about 100 euro more per month.
Before I go and ask for a minor salary decrease (I never thought one day I would ask one...), just a quick question: would participating in the bike scheme or a pension solve this problem? I know that money is taken from the gross pay, so maybe that would pull me back to A1?
I know chances are small, but if revenue considers this "making less money", my problem would be solved too.
Any feedback would be much appreciated


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## Graham_07 (25 Feb 2010)

*Re: PRSI question: A1 or A2*

The rate of PRSI on class A2 is actually less than that for class A1, not more. See here

PRSI class A2 is for - medical card holders and to people getting a Widow's or Widower's Pension, a One-Parent Family Payment or a Deserted Wife's Benefit/Allowance. If your status did not change from what it was to one of these then there is an error somewhere. If it did change, then changing from A1 to A2 should actually result in a lesser deduction.

The added deduction may be to do with the Income Levy, not PRSI as the % rate for that is threshold based.


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## robinvn (25 Feb 2010)

*Re: PRSI question: A1 or A2*

I must have misread something yesterday. Thanks for pointing that out, I actually moved from subclass AL to subclass A1, as per the link you just sent me. So instead of making a bit less than 500 euro per week, I now earn a bit over 500 euro per week.

Update: I just edited the title


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## robinvn (25 Feb 2010)

So just to come back to the original query: would the bike scheme or a pension scheme have any effect on the PRSI contribution?
Thanks


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## Berni (25 Feb 2010)

Yes, both of those would reduce your PRSI amount


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## Towger (25 Feb 2010)

Yes. They both come off before PRSI is calculated.


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## robinvn (25 Feb 2010)

Very good news, thanks to all!


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