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PRSI Class S for Self Employed

8 min read, published 2026-04-16

## What Class S is Class S is the PRSI class for self employed people, including sole traders, partners in partnerships, and proprietary directors who own more than 50 percent of their company. Class S contributors pay PRSI on profits from self employment, on rental income, and on certain investment income. ## 2026 Class S rate The Class S rate matches the employee rate: - 1 January to 30 September: 4.1 percent - 1 October to 31 December: 4.2 percent Unlike Class A, there is no employer counterpart because the contributor is their own employer. ## Minimum annual contribution A minimum annual PRSI of €650 applies in 2026. This means even self employed people with low profit pay at least €650 per year to maintain pension and benefit entitlements. ## Worked example, modest profit Aine has self employed profit of €30,000. - PRSI: €30,000 x 4.1 percent = €1,230 (assuming year ends before October change applies in arrears) - Above the €650 minimum ## Worked example, low profit Sinead has self employed profit of €10,000. - Calculated PRSI: €10,000 x 4.1 percent = €410 - Below the minimum, so the minimum €650 applies - Effective rate: 6.5 percent ## How Class S is paid Class S PRSI is paid annually with income tax through the self assessment system: - Preliminary tax due 31 October each year - Balancing payment due 31 October the following year - Reported on the Form 11 along with income tax ## Benefits earned under Class S Class S earns fewer benefits than Class A but the gap has narrowed significantly: - State Pension Contributory: yes - Maternity, Paternity, Parent's Benefit: yes - Adoptive Benefit: yes - Invalidity Pension: yes (since 2017) - Treatment Benefit: yes - Jobseeker's Benefit Self Employed: yes (since 2019) - Illness Benefit: no - Carer's Benefit: no - Occupational Injuries Benefit: no ## Mixed Class A and Class S Many people have both PAYE employment and a side business. Each income is treated separately: - Salary: Class A through payroll - Side business: Class S through self assessment The minimum €650 may not apply if Class A contributions are sufficient in the year. ## Director PRSI Proprietary directors (over 50 percent shareholding) are Class S even when paid through payroll. The company runs payroll on their salary but classifies as Class S, paying both employee and effective employer PRSI through the self assessment route. ## Educational notice Self employed PRSI interacts with income tax planning. Always consult a qualified tax adviser before making changes to contribution patterns.