# PRSI CLASS K1 - No entitlements - why pay it?



## oldtimer (29 Nov 2006)

*I notice in my pension every fortnight a deduction for PRSI - class K1. I am told it entitles me to nothing. Why am I paying it so? Can I refuse to pay it?*


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## ClubMan (29 Nov 2006)

PRSI class K actually involves 0% _PRSI _and 2% health levy where weekly earnings are in excess of €440. The lack of any _PRSI _contributions explains the lack of _PRSI _benefits cover. As far as I know you cannot opt not to pay this.


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## jpd (29 Nov 2006)

Strictly speaking the "2% Health Levy" is just another tax on income and not a social insurance payment.


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## oldtimer (30 Nov 2006)

Thanks Clubman and jpd. Yes that is what I was told - just another form of tax. Also it looks compulsory so i cannot opt out. Maybe the cut off amount will be raised in the budget.


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## Guest127 (30 Nov 2006)

eazos posted under taxation forum where you can get a refund of health contributions if your 2005 income was under 20,800. (which is around 440 per week)


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