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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Universal Social Charge (USC)
The Universal Social Charge is applied to gross income before any tax credits or deductions (except pension contributions and certain capital allowances). USC replaced the income levy and health levy in 2011 and applies separately from income tax.
03Tax Credits & Reliefs
Tax credits reduce your income tax liability euro-for-euro. Unlike deductions (which reduce taxable income), credits directly reduce the tax you owe. Ireland's tax credit system is generous and can significantly reduce effective tax rates.
04How Your Tax is Calculated
Irish tax calculation combines income tax (at 20%/40%), USC (at progressive rates), and PRSI (at 4.35%). Understanding how these interact is crucial for tax planning.
05Capital Gains Tax & Investment Income
Capital gains and investment income are taxed separately from employment income. Ireland has specific rules for different asset types including property, shares, and cryptocurrency.
06Special Assignee Relief Programme (SARP)
SARP is Ireland's expat tax regime designed to attract highly-skilled international talent. It provides significant income tax relief for qualifying employees assigned to work in Ireland from abroad.