In order to qualify for credits, a person must first have entered employment and must have paid at least one Pay Related Social Insurance (PRSI) at Class A, B, C, D, E, H or P. The vast majority of people will be receiving a Class A stamp.
To be entitled to these credits, a person must have worked previously and have paid at least one PRSI contribution. Normally, if at any stage in their working life, a person has no PRSI paid or credited contributions for two full tax years, they cannot be awarded credits again until they return to work and pay PRSI contributions for at least 26 weeks.
Credits are Pay Related Social Insurance (PRSI) contributions which can be awarded to insured persons who are unable to continue paying PRSI contributions from employment.
They are awarded in certain circumstances such as:
- during periods of incapacity from work or unemployment
- in receipt of certain allowances or PRSI benefits
- participating in a recognised employment scheme
- participating in an approved training or education course.
Why are Credits important?
If a person has a break in their insurance record because of illness, unemployment etc, a credit may be awarded for each week to bridge the gap between periods of insurable employment.
These credits are important as they help maintain a person’s insurance record without a break. These credits can assist a person to qualify for other social welfare benefits at a later stage. While Credits do not create entitlements on their own, they can help maintain and improve entitlements.
A person may also be awarded credits without receiving a Benefit or Allowance payment. This may apply in the case of a person whose entitlement to a Jobseeker's Benefit has ended, but who does not qualify for Jobseeker's Allowance due to their means. In this case, the person may be entitled to sign for credits to protect their other social insurance entitlements. Signing for credits usually involves attending a local Department of Social Protection office once during the year.
Credits can also be very important in facilitating a person to access a contributory pension or a contributory pension at a higher rate.
One useful recent announcement is the opportunity for people aged 50 or over, who are in receipt of Jobseekers Credits for a period of time, to access Community Employment and receive a payment. In addition to this being potentially useful from a work and social perspective, it also allows the person to draw paid PRSI contributions.
In order to be entitled to Jobseekers Credits, a person must be available for full-time employment, capable of work and must also be genuinely seeking work.
Checking PRSI record
A Contribution Statement is a summary of a person’s pay-related social insurance (PRSI) record in Ireland. It gives details about how many PRSI paid and credited contributions have been paid to the end of the last tax year.
A Contribution Statement will help a person to calculate and understand their state pension entitlements.
The quickest and easiest way to request a statement is through MyWelfare.ie This online service allows you to:
- request a statement of social welfare payments received, such as benefits, allowances and pensions
- request a statement of your history and record of contributions paid.
Alternatively, a person can request a copy of your social insurance record through completing the following form:
https://www.welfare.ie/en/Pages/secure/RequestSIContributionRecord.aspx