Class S PRSI for Self-Employed People Ireland 2026

• Sole traders and people carrying on a trade, profession or vocation.
• Certain company directors who are treated as self-employed for PRSI.
• Certain people with rental, investment or other reckonable non-employment income.
• Some local-authority members and other groups specified in PRSI rules.

Company ownership or the word “contractor” does not by itself settle employment status. DSP can examine the real working relationship and decide the correct insurability class.

The minimum must not be applied to income below the liability threshold. This is the calculation correction implemented in v4.1.233.

Official guidance sets Class S at 4.20% of reckonable income until 30 September 2026 and 4.35% from 1 October 2026. A full-year planning estimate can use a proportionate blended rate of 4.2375% where income is assumed to arise evenly through the year.

The annual return is the official calculation. A blended estimate may not reproduce the exact outcome where trading began or ceased during the year, income arose unevenly or a different assessment basis applies.

For a trade, PRSI is based on gross income after allowable capital allowances under the relevant self-assessment rules. It is not simply turnover, drawings or the amount transferred to a personal bank account.

Revenue also states that PRSI can apply to rental income and legally enforceable maintenance payments. Certain company directors can be Class S, but the result depends on the director’s employment status and company relationship. Use professional advice or DSP Scope Section where the position is unclear.

1. Prepare the tax-adjusted profit or other reckonable income.
2. Calculate Income Tax, USC and Class S PRSI separately.
3. Include the liabilities in the annual Income Tax return.
4. Pay through the self-assessment pay-and-file process, including preliminary tax where required.
5. Check the Contribution Statement later to confirm the social-insurance record.

Unlike employee Class A, there is no employer share. The full cash reserve must be planned by the self-employed person.

Class S can support State Pension (Contributory), maternity, paternity, parent’s, adoptive, carer’s, treatment and other specified benefits, subject to each scheme’s conditions. It does not provide identical coverage to Class A.

Since 2024, self-employed people who defer State Pension (Contributory) can remain liable until the pension is awarded or age 70. People born before 1 January 1958 or already receiving the pension can have different treatment.

Class S is a compulsory contribution where the self-employed liability conditions are met. Voluntary contributions are a separate arrangement for certain people who are no longer compulsorily insured and want to help maintain coverage for long-term benefits.

Someone with current compulsory Class S liability cannot simply replace it with a lower voluntary contribution. Eligibility and application deadlines for voluntary contributions should be checked with DSP.