PRSI - Pay Related Social Insurance – Ireland
PRSI (Pay Related Social Insurance) is Ireland's social security system funding healthcare, state pensions, maternity/paternity leave, jobseeker's benefits, and disability payments. Contributions are mandatory for all workers earning above minimum thresholds.
PRSI - Pay Related Social Insurance
PRSI (Pay Related Social Insurance) is Ireland's social security system funding healthcare, state pensions, maternity/paternity leave, jobseeker's benefits, and disability payments. Contributions are mandatory for all workers earning above minimum thresholds.
Employee Contributions (Class A)
Applies to all gross employment income including bonuses and benefits. Automatically deducted from salary by employer.
Rate increases by 0.15% from October 1, 2026, as part of government's long-term pension funding strategy. Further increases planned for 2027 (0.15%) and 2028 (0.2%).
No PRSI required if weekly earnings are €352 or less (€18,304/year). Still covered for benefits as employer pays on your behalf.
Sliding scale PRSI credit up to €12/week for earnings between €352 and €424 weekly to ease transition into PRSI system.
Employer Contributions (Class A)
Paid by employer on top of salary for weekly earnings above €552 (11.25% before October 2026). Not deducted from employee's gross pay. Employers bear full cost.
Applies to weekly earnings of €552 or less. Lower rate helps small businesses and part-time employment costs.
Self-Employed (Class S)
Self-employed pay PRSI on net business income. Rate mirrors employee rate but provides fewer benefits (no jobseeker's benefit, reduced illness benefit).
Minimum annual PRSI contribution of €650 from October 2024, even if calculated amount is lower. Ensures minimal contribution toward state pension.
Self-employed persons with total income under €5,000 are not liable to PRSI. Above this, PRSI applies to all business income.
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