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.
The rate table, by period
| Period | Lower rate | Higher rate | Weekly threshold |
|---|---|---|---|
| To 30 September 2024 | 8.8% | 11.05% | €496 |
| 1 October to 31 December 2024 | 8.9% | 11.15% | €496 |
| 1 January to 30 September 2025 | 8.9% | 11.15% | €527 |
| From 1 October 2025 | rose under roadmap, verify | rose under roadmap, verify | verify current |
The dated figures above are the sets we can fully confirm from the published SW14 guides (gov.ie). From 1 October 2025 all PRSI rates rose again under the Government's roadmap (the employee Class A rate to 4.2%), with further increases scheduled for 1 October 2026, 2027 and 2028 to part-fund the Social Insurance Fund and State Pension. We do not print employer figures for those periods until confirmed; check the current SW14 before running payroll.
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 €527 a week the lower rate gives €46.90; at €528 the higher rate applies to the whole wage, €58.87 (rates to 30 September 2025). There is no marginal relief across the threshold, which is why it matters for wage-setting near the minimum wage: the threshold was set at €527 from 1 January 2025 precisely so a full-time minimum-wage week stayed on the lower rate, and it is expected to move when the minimum wage does. Verify the current threshold.
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. 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.