Guide

Employer PRSI rates in Ireland: history, threshold and the roadmap

Updated

Employer PRSI is the largest payroll tax most Irish employers pay, and its rates now move every October. Here is the sequence, dated.

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The rate table, by period

Class A employer PRSI rates by period
PeriodLower rateHigher rateWeekly threshold
To 30 September 20248.8%11.05%€441
1 October to 31 December 20248.9%11.15%€496
1 January to 30 September 20258.9%11.15%€527
1 October to 31 December 20259.00%11.25%€527
1 January to 30 September 20269.00%11.25%€552
From 1 October 20269.15%11.40%€552

The current and October 2026 rows come straight from the Department's published Class A table (gov.ie: PRSI Class A rates). The earlier rows follow the PRSI Roadmap increases of 0.1 percentage points on 1 October 2024 and again on 1 October 2025, and the threshold move from €441 to €496 on 1 October 2024 (gov.ie); the threshold then went to €527 for 2025 and to €552 from 1 January 2026 (gov.ie: Advance Notice for 2026, Citizens Information). Under the roadmap all PRSI rates rise a further 0.15 points on 1 October 2027 and 0.2 points on 1 October 2028, to part-fund the Social Insurance Fund and hold the State Pension age at 66.

How the threshold works: a cliff, not a band

Employer PRSI is charged on the employee's full earnings at whichever single rate applies. At €552 a week the lower rate gives €49.68; at €553 the higher rate applies to the whole wage, €62.21 (rates to 30 September 2026). There is no marginal relief across the threshold, which is why it matters for wage-setting near the minimum wage: the threshold rose to €552 on 1 January 2026 in line with the National Minimum Wage going to €14.15 an hour (gov.ie: Advance Notice for 2026), and it has moved with the minimum wage each January.

What employer PRSI is charged on

  • Gross pay, including overtime, bonuses and commission, in the week or month it is paid.
  • Notional pay: benefits in kind such as company cars and medical insurance attract employer PRSI on their taxable value.
  • Employer pension contributions to approved schemes do not attract employer PRSI, one reason salary sacrifice style pension structuring is discussed with advisers.
  • Employer PRSI is deductible in computing the employer's taxable profits.

Rate history stated as at this page's updated date, sourced to the Department's published Class A table and its advance notices. Rates change every 1 October under the PRSI Roadmap and the employer threshold moves each January with the minimum wage; check the SW14 2026 tables on gov.ie or your payroll software's current tables before running payroll.

Rate history stated as at this page's updated date. October 2025 and later figures are deliberately not printed until we can confirm them; use gov.ie SW14 or your payroll software's current tables.

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Questions, answered directly

What is the employer PRSI rate in Ireland?

To 30 September 2026: 9% on all earnings where weekly pay is €552 or less, 11.25% on all earnings where it is more. From 1 October 2026 those become 9.15% and 11.4%.

Is employer PRSI paid on top of gross salary?

Yes. Employer PRSI is a cost the employer pays in addition to gross pay; it is never deducted from the employee's wages. Only the employee rate (4.2% to 30 September 2026, 4.35% after) appears as a payslip deduction.

Employer PRSI rates 2027: what will they be?

9.15% and 11.4% until 30 September 2027, the rates in force from 1 October 2026. Under the PRSI Roadmap all PRSI rates then rise a further 0.15 points on 1 October 2027, and 0.2 points on 1 October 2028.

Sources

  1. gov.ie, PRSI Class A rates (Department of Social Protection)
  2. gov.ie, PRSI Class S rates
  3. gov.ie, PRSI Class J rates
  4. gov.ie, Advance Notice for 2026 (PRSI changes announced in Budget 2026)
  5. Citizens Information, paying social insurance (PRSI)
  6. Citizens Information, credited social insurance contributions
  7. gov.ie, PRSI Roadmap rate increases 2024 to 2028 (press release)
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