Thousands of workers due refund over PRSI payment

THOUSANDS OF workers are due a refund for overpaying their PRSI over the past three years.

The Department of Social Protection has confirmed that €10 million has already been paid back to taxpayers who received an average refund of €385.

The overcharging is due to the way in which a health contribution was collected with PRSI.

The refund applies to workers who earned less than € 26,000 in 2008, 2009 and 2010 but who earned more than € 500 in any one week in those years.

Those earning less than €26,000 were not liable to pay the levy, yet some who earned more than € 500 a week in some weeks, while still earning less than €26,000 annually had the levy automatically deducted from their pay. Anyone earning more than €26,000 a year or those who earned less than €500 each week of the year are not entitled to any refund.

A spokesman for the department said the overpayment was “not something new” and “had been the case for the past few years”.

The department said the overpayment was not an error as the system was set up to deduct the levy on a weekly basis and workers could later apply for a refund.

The spokesman said while there was “no way of estimating what numbers are involved”, he confirmed that up to the end of last year, the department had paid about € 10 million to some 26,000 applicants. He said while it may be the case that up to 900,000 people earn less than the € 26,000 threshold, only those who earned more than €500 in a particular week were eligible for a refund.

Those who have overpaid, however, will not receive an automatic refund. They must apply in writing to the Department of Social Protection within four years of December 31st of the year of the deduction.

Those overcharged in 2011 must apply by December 31st, 2015. Those who overpaid in 2008 must apply by December 31st this year. Any contributions paid prior to January 1st, 2008, are outside the time limit for making a claim.

The Consumers’ Association of Ireland has called on the Government to be more proactive in refunding the money by asking employers to convey refund information to their staff.

The department says no refunds will arise from 2011 onwards because the universal social charge replaced the health levy.

Those wishing to claim a refund should write to the department at Oisín House, Pearse Street, Dublin 2, including their name, address, PPS number and date of birth.