Pay
PRSI explained: rates, the weekly credit and what it pays for
Last updated 16 October 2026
Employee PRSI is 4.2% until 30 September 2026 and 4.35% from 1 October, with nothing due on €352 a week or less. How it works and what it buys.
Pay Related Social Insurance (PRSI) is the contribution that builds your record for the State pension. It also counts for benefits such as Jobseeker's Benefit, Illness Benefit and Maternity Benefit. Your class depends on the type of work; most private-sector and newer public-sector employees pay Class A.
Rates rise each October
Under a schedule set in law in 2024, PRSI rates rise every 1 October until 2028. For a Class A employee:
| Period | Employee rate |
|---|---|
| 1 January to 30 September 2025 | 4.1% |
| From 1 October 2025 | 4.2% |
| 1 January to 30 September 2026 | 4.2% |
| From 1 October 2026 | 4.35% |
| 1 January to 30 September 2027 | 4.35% |
| From 1 October 2027 | 4.5% |
The weekly threshold and the PRSI credit
PRSI is worked out week by week on gross pay (pay before tax), including benefits in kind and before pension contributions. Nothing is due on €352 a week or less. Above that, the charge applies to all your pay, not only the part over €352.
To soften that step, employees earning between €352.01 and €424 a week get a PRSI credit of up to €12 a week. It is reduced by one-sixth of earnings over €352.01. Above €424 there is no credit.
| Weekly pay | PRSI to 30 Sept 2026 | PRSI from 1 Oct 2026 |
|---|---|---|
| €350.00 | €0.00 | €0.00 |
| €377.00 | €8.00 | €8.57 |
| €400.00 | €12.80 | €13.40 |
| €600.00 | €25.20 | €26.10 |
| €1,000.00 | €42.00 | €43.50 |
Your employer pays too
Employers pay their own PRSI on top of your salary. In 2026 it is 9% (9.15% from October) on weekly pay up to €552 and 11.25% (11.4% from October) above it. Budget 2027 raises the €552 threshold to €600 from January 2027, so that full-time workers on the higher minimum wage stay in the lower band.
Self-employed: Class S
Self-employed people pay Class S on income of €5,000 or more, through their tax return. Because the rate changes in October, Revenue uses a blended rate for the year: 4.125% for 2025 and 4.2375% for 2026, with a minimum of €650. See PRSI for the self-employed.
Who pays no employee PRSI
- employees aged 66 or over (their employer still pays)
- people earning €352 a week or less from all their jobs
Work it out
Sources
- Department of Social Protection: PRSI 2026 Contribution Rates and User Guide (SW 14) (checked 25/10/2026)
- Citizens Information: Paying social insurance (PRSI) (checked 16/10/2026)
- Irish Statute Book: Social Welfare (Miscellaneous Provisions) Act 2024, section 3: Class A and S PRSI rate increases each 1 October to 2028 (checked 25/10/2026)
- Department of Social Protection: PRSI Class S Rates (checked 16/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.