Questions re Employer PRSI relief on contributions to a PRSA.

How do you calculate the Employer’s PRSI relief on the employee’s contributions to a PRSA? Is it simply 10.75% of the Employee’s contributions to the PRSA? If so, if an employee makes a monthly contribution to a PRSA of €100, then the Employer can make a contribution of €10.75 to the PRSA, at no extra cost to the Employer? Is that correct?

In order for the Employer to avail of the PRSI relief, does the Employee make contributions to the Employer’s designated PRSA provider, or can the contributions be made to any Revenue approved PRSA?

Thanks.

The Employer PRSI saving on PRSA contributions happens automatically as long as the "net pay" system is used. In oher words, it doesn't matter what PRSA is used, as long as the contribution is deducted from the employee's salary through payroll. The contribution comes off the employee's gross salary, and so the amount of Employer PRSI is calculated off the reduced salary figure.

Liam D. Ferguson

Thanks very much.