News

State Pension Contributory) – Increase in Upper Age Limit for PRSI Exemption:

From 1 January 2024, the State Pension (Contributory) (SPC) will become more flexible. Individuals who turn 66 on or after 1 January 2024 will be able to drawdown their SPC at any age between 66 and 70.  

This change will have PRSI implications for those who turn 66 on or after 1 January 2024, summarised as follows:     

• Employees will remain on PRSI Class A up to the age of 70, or until they are awarded their SPC, if earlier. Class J will then apply to any employment income earned after that date.  
• Class S contributors (e.g. self-employed, office holders and certain company directors, councillors, income from an Approved Retirement Fund (ARF)) will remain on Class S up to the age of 70, or until they are awarded their SPC, if earlier. Class M will apply to that source of income after that date.  

Initially, employers will have to rely on employees to confirm if they have been awarded their SPC. A long term solution is being explored to see if it will be possible for the DSP to notify employers via Revenue and the RPN process if an individual has been awarded his/her SPC.  

These changes do not affect those who turn 66 on or before 31 December 2023. Class J or Class M will apply as appropriate to income earned after they turn 66.   

For those employees who defer claiming their SPC beyond 66 and continue to pay PRSI Class A, the upper age limit for claiming Illness Benefit, Injury Benefit or Jobseeker’s Benefit will be increased from 66 to 70 years, or the date their SPC is awarded, if earlier.