Please note that the Department of Social Protection have recently clarified their position in relation to the above. Previously it was held that as an Employers contribution to a PRSA on behalf of an Employee would be regarded as a Benefit in Kind and therefore the Employee would have to pay PRSI on the value of the Employer contribution.

However this situation has been clarified very recently and the Department of Social Protection have said that although the Employee will be liable to the USC on the Employer Contributions, he/she will not be liable PRSI on this amount. Please ensure your Payroll Departments are aware of this change to ensure the more favorable tax treatment is received.