PRSI Clarification?

Hi,
I am hoping that someone can help me out here.
I recently was lucky enough to get a pit of a pay rise, from 22500p/a to 23425p/a. Given the times I have no complaints. There is just one thing that is totally confusing me though. My PRSI/Health contribution jumped from c.€51pm to c.€151pm. So while in theory I received an increase I am actually €25 quid worse off.
In other words I would have been better off without the increase!!!
Can anyone explain to me please, simply, what is going on with PRSI/Health Levies? Why when my gross went up I am worse off?

Thanks in advance

if you have a salary of €22,500 p.a you pay prsi/health levies of €635.96
if you have a salary of €23,425 p.a you pay prsi/health levies of €672.88
so 672.88 - 635.96 = 36.92 / 12 = 3.08 so in reality your prsi should only increase by 3.08 p.m and not 100 so i would ask your employer to explain it

Earning under €500 a week, you're not paying Health levy, just Prsi and income levy. Something is wrong with employer's calculations.

Was the increased backdated and you got a lump in one payslip?

I would think there was a mistake in Er calculation - the amount would not be an amount that was due going back...
PRSI is calculated on the amount of ur wages that u receive for ur pay frequency - it is not cummulative like PAYE is...

Actually, becky's suggestion may be correct, as the several weeks' back wages would be liable for Prsi and levy in the period when received.
If this is the case, all should be back to normal next pay packet, and any overpayment can be claimed back after the year end ( takes months to get refund though).

I can't see it being caused by payment of back-pay based on the figures given in the original post.
If the OP received back pay for the entire calendar year in August ie August had a top-up for the months Jan to July and the new monthly salary was paid in August, then using the figures detailed in the first post would give the following:

Gross pay (new basic) 1952.08
Back-pay (Jan to July) 539.58
Total gross in August 2491.66

PRSI on above: 77.63
Health contribution: 99.67 *
Income levy 49.83
PAYE 193.33 **

Net pay after tax 2071.21

this compares to the months prior to August, when the person would have been receiving net €1714.54 (again based on a single person's data). So the pay would have INCREASED rather than decreased in August.

As others have indicated, it appears to be an error by the employer/ payroll office.


*the OP wouldn't normally pay this but was liable in August due to the higher pay. It can be refunded after December- see "Possible refund of Health contribution" here

** assuming standard tax credits and cut-off point for a single person