Who pays employer's PRSI with an umbrella?

The umbrella pays it, but out of your contract income. From the day rate it takes its fee and employer's PRSI (11.40% from 1 October 2026, for most pay). It pays you the rest as salary.

Why does a limited company usually leave more?

Company profit is taxed at 12.5%, and a Class S director pays no employer's PRSI. But dividends are taxed again as your income, and the company has running costs, so on lower day rates an umbrella can come out ahead.

Contracting

Umbrella or limited company: take-home compared

See what you'd take home on the same contract through an umbrella company or your own limited company.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

Who pays employer's PRSI with an umbrella?: The umbrella pays it, but out of your contract income. From the day rate it takes its fee and employer's PRSI (11.40% from 1 October 2026, for most pay). It pays you the rest as salary.
Why does a limited company usually leave more?: Company profit is taxed at 12.5%, and a Class S director pays no employer's PRSI. But dividends are taxed again as your income, and the company has running costs, so on lower day rates an umbrella can come out ahead.

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