Contracting and PRSI
One of the concerns those new to contracting often raise before taking a contract role is the perceived loss of Social Welfare benefits and the fear of what that might mean for them. Thankfully, there’s good news for self-employed Professional Contractors.
Most employed people over 16 years of age make social insurance contributions whether they are employees or self-employed. The amount you pay is based on your earnings and the type of work you do. For this reason it is called Pay Related Social Insurance (PRSI).
Pay Related Social Insurance is a contribution made by the individual (employee or professional contractor) and the employer (where someone is an employee). It is based on a percentage of your earnings and funds social welfare benefits.