Question: Can anyone explain me what is the PRSI exactly? Thanks a lot.

Answer: Most employers and employees (over 16 years of age) in Ireland pay social insurance contributions into Ireland's national Social Insurance Fund. In general, the payment of social insurance is compulsory. \n\nIreland's Social Insurance Fund is made up of a current account and an investment account managed by the Minister for Social and Family Affairs and the Minister for Finance, respectively. The current account consists of monies collected from people in employment. This money is then paid back to fund social insurance benefits and entitlements. The investment account is a savings account that is managed by the Minister for Finance. The Comptroller and Auditor General has responsibility for ensuring that the accounts are kept in order and reports are made to the Houses of the Oireachtas. \n\nIf you are in employment, the amount of social insurance you pay depends on your earnings and the type of work you do. Your social insurance contributions in Ireland are referred to as PRSI (Pay Related Social Insurance). Sometimes, you will hear people describe their PRSI record as "stamps". This term dated from before 1979 when employers would literally stamp a card each week of employment. That card was then brought to a local social welfare office in order to claim social welfare payments. \n\nSince 1979, your employer keeps a record of the insurance contributions you make. These monies are now collected by the Revenue Commissioners who in turn make annual returns of these records to the Department of Social and Family Affairs. All records of your insurance contributions are kept by the PRSI Records section in the Department of Social and Family Affairs. \n\nSocial insurance rates\nFor people in employment in Ireland, social insurance contributions are divided into different categories, known as classes or rates of contribution. The type of class and rate that you pay is determined by the nature of your work. For example, a person employed in a supermarket earning less then 38 euro per week will be insured under Class J. If that person earned over 38 euro, they would probably be insured under Class A. In fact, most employees in Ireland pay Class A PRSI. This class of contribution may entitle you to the full range of insurance-based benefits that are available from the Department of Social and Family Affairs. \n\nThe other classes of social insurance are classes C, D, B, E, H, J, S, K, M, and P. If you are insured under one of these classes, you are paying insurance at a lower rate than Class A contributors, which means that you are not entitled to the full range of social insurance benefits. This is because you are paying less towards social insurance than a Class A contributor. \n\nExample: Joe earns less than 38 euro per week. He is insured under Class J, which only entitles him to Occupational Injuries Benefit. \n\nDetails of the different groups and occupations that these classes apply to and the benefits covered are contained in the Department of Social and Family Affairs Booklet SW14. (Also available from your local social welfare office). \n\nIf there is a problem in deciding what class of social insurance you should pay, the Scope Section in the Department of Social and Family Affairs may decide the issue after examining your employment situation. \n\nHow is social insurance (PRSI) paid?\nIf you are an employee, your social insurance contributions are deducted by your employer and collected by the Revenue Commissioners. The Revenue Commissioners then pay the money into the Social Insurance Fund. A record of the contributions you have paid is then sent to the Department of Social and Family Affairs. Your employer will also pay social insurance on your behalf. \n\nAs well as paying into the Social Insurance Fund, you will also be expected to pay what is called the Health Contribution, which is charged at 2% on all income. The Health Contribution is not paid into the Social Insurance Fund. This money is collecte
This question from the Yahoo Q&A forum is categorized in the topic: Health