Pay and tax

PRSI (Pay Related Social Insurance)

Social insurance on pay. Class A employees pay 4.2% up to 30 September 2026 and 4.35% from 1 October 2026 once earnings pass €352 a week.

What it means

PRSI pays for the State Pension (Contributory), Jobseeker's Benefit, Illness Benefit, maternity benefit and other social insurance payments. Most private and public sector employees pay Class A.

PRSI is assessed weekly. If you earn €352 or less in a week you pay no employee PRSI. Between €352.01 and €424 a PRSI credit of up to €12 a week reduces the charge, tapering by one-sixth of earnings over €352.01. Above €424 you pay the full rate on everything, with no upper limit.

The Class A employee rate rose from 4.1% to 4.2% on 1 October 2025 and rises again to 4.35% on 1 October 2026. Employers pay their own share on top.

Formula

Weekly PRSI = weekly pay x rate - PRSI credit PRSI credit = €12 - (weekly pay - €352.01) / 6, for pay from €352.01 to €424

Example

At €377 a week the PRSI credit is €7.83, so the charge is €8.00 at 4.2% and €8.57 at 4.35%. At €1,000 a week, PRSI from October 2026 is €43.50.

Work it out

Take home pay calculator

Related terms

USC (Universal Social Charge)A separate tax on gross income. Nothing is due if your income is €13,000 or less; above that, 2026 rates run from 0.5% to 8% on all of it.PAYE (Pay As You Earn)The system where your employer takes income tax, USC and PRSI from each payday and pays it to Revenue, using your Revenue Payroll Notification.Tax creditsAmounts taken off your gross tax, not your income. A single PAYE worker gets €4,000 in 2026: the Single Person and Employee Tax Credits.
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