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State Pension Reckonable Contributions Thumbnail

State Pension Reckonable Contributions

The amount of your State Pension (Contributory) will depend on the total number of weekly reckonable contributions (up to a maximum of 52 per calendar year) and the age at which you start claiming the pension. 

 Your reckonable contributions can be either paid or credited. Credits are allocated in specific situations, such as when you are not working and/or receiving a social welfare benefit. 

 To accurately assess the number of your reckonable contributions, you should obtain a PRSI statement through MyWelfare.ie. 

 Contribution statements

The key column on the contribution statement below is ‘Combined Reckonable and Credited Contributions for Pension’. This is what your State Pension entitlement will be based off.


Calculating Level of State Pension (Contributory)

 Once you have obtained a PRSI contribution statement from the Department of Social Protection, the next step is to calculate the amount of pension benefit you are eligible to receive. 

 Calculation Methods

Yearly Average Method

 Under the yearly average method, to calculate your average, you take the total number of reckonable contributions (both paid and credited) and divide this by the number of years from your entry into the social insurance system up to the year before you start receiving your State Pension (Contributory), typically between ages 66 to 70. This method determines the average contributions per year, which is a critical factor in calculating the pension amount you are eligible to receive. 

We have included below a worked example based off the sample statement above. 

Whilst using the Yearly Average method, you may be eligible for the Homemaker Scheme. Under the Homemaker Scheme, any period since 6th April 1994 during which you were not working and minding a child under the age of 12, or an ill or disabled person aged 12 or over, is disregarded in the calculation of your yearly average number of contributions for the Yearly Average method, subject to a maximum of 20 years. 

 Level of Pension Payable under Yearly Average Calculation

Once the Yearly Average calculation is performed, the level of benefit can be ascertained from the table of pensions below. In this case with 49 contributions on average per year, the individual has qualified for the maximum level of State Pension (Contributory) and is therefore eligible for a payment of €277.30 per week. 

In the case of someone with a Yearly Average of 26 (for example), the individual would be eligible to receive a State Pension (Contributory) of €236.10 per week based on current rates.

Total Contributions Approach 

 Under the Total Contributions Approach method, your benefit is calculated based on your “Combined Reckonable Contributions and Credited Contributions for Pension”/2,080 multiplied by the max personal rate of pension. 

 Whilst using the Total Contributions Approach method, you may be eligible for the HomeCaring Periods Scheme. Under the HomeCaring Periods Scheme, any period not working and minding a child under age 12, or an ill or disabled person aged 12 or over, you will receive credited contributions for such periods, subject to a maximum of 1,040 reckonable contributions (20 years). 

 You may also be awarded credited contributions for any periods where you are unable to work and are in receipt of a social welfare payment, e.g., Illness Benefit or Jobseeker’s Benefit (subject to a max of 520).

 However, when both credits and HomeCaring Periods Scheme contributions are on a record, 1,040 is the maximum number of combined credited contributions that can be used in the calculation of your pension.

 We have included below a worked example based off the sample statement above. 

If you apply for the State Pension (Contributory) in 2024, you will receive the greater amount of the two calculations: the Yearly Average or the Total Contributions Approach. In this case being the Yearly Average calculation. 

 If you apply for the State Pension (Contributory) from 2025 onwards, your pension amount will be determined by the higher of:

  • A pension calculated using the Total Contributions Approach only, or
  • A pension calculated based on a combination of the Yearly Average and Total Contributions Approach, which varies depending on when you claim your pension

From 2034 onwards, your pension will be calculated on the Total Contributions Approach only. 

Voluntary PRSI Contributions

In certain situations, if you are under 66 and no longer subject to compulsory PRSI due to cessation of employment and are not receiving credited contributions from social welfare benefits, you may choose to make voluntary PRSI contributions. 

 To qualify for making voluntary contributions, you must meet the following eligibility criteria:

  • You must have at least 520 PRSI contributions paid under compulsory insurance as an employee or self-employed individual.
  • You must apply to make voluntary contributions within 60 months (5 years) following the end of the last completed tax year (contribution year) in which you either paid compulsory insurance or were awarded credited contributions. Under very exceptional circumstances, this period may be extended at the discretion of the Minister.

There are three different rates for voluntary contributions, each linked to the last PRSI contribution paid or credited to you. 

  • High Rate Contribution: Applicable if you previously paid PRSI at Class A, E, or H. The rate is 6.6% of your reckonable income from the previous tax year, with a minimum payment of €500.
  • Low Rate Contribution (2.6%): Applicable if you previously paid PRSI at Class B, C, or D. The rate is 2.6% of your reckonable income from the previous tax year, with a minimum payment of €250. By making voluntary contributions at this rate, you will be entitled to the Widow’s, Widower’s, or Surviving Civil Partner's (Contributory) Pension. 
  • Special Flat Rate: Applicable if you previously paid PRSI at Class S. A flat rate of €500 is payable regardless of your income.


Note: This document is based on our understanding and research from the Dept of Social Protection as well as input from third party advisors. It is not exhaustive and some of the information/ practice is subject to interpretation.