PRSI changes imminent in Ireland – is your payroll prepared?
All PRSI contribution rates will increase by 0.1% from 1 October 2025.
The Irish Government has agreed a series of incremental increases in PRSI rate contributions for all employers, employees and the self-employed over the next five years. The first of these increases rolled out on October 1st, 2024. The second raise is on October 1st, 2025.
- For employers, these adjustments will affect payroll calculations and compliance requirements.
- Employees will notice an immediate, and small, reductions in their take-home pay, so communicating these changes to employees in advance is recommended.
PRSI increases from 2024 – 2028
The Social Welfare (Miscellaneous Provisions) Act 2024, signed in July 2024, provides for the following increases in all PRSI rates for all PRSI classes, with the exception of PRSI Class M (Exempt) and the employee contribution payable under Class J (0%), from 1 October:
|
Year |
Increase |
|
1 Oct 2024 |
0.1% |
|
1 Oct 2025 |
0.1% |
|
1 Oct 2026 |
0.15% |
|
1 Oct 2027 |
0.15% |
|
1 Oct 2028 |
0.2% |
The minimum contribution for self-employed people and voluntary contributors (formerly self-employed) will also increase by €150 to €650 from 1 October 2024.
Class A threshold raises to €496 p/w in Oct 2024
An amendment was brought at Committee Stage of the Bill to increase the employer PRSI threshold from October 1st. The threshold for the higher rate of Employer PRSI under Class A increases – from €441 per week, €882 per fortnight, €1,911 per month, to €496 per week, €992 per fortnight and €2,149 per month.
This ensures employers with employees working full time on the national minimum wage will not be required to pay the higher rate of employer PRSI of 11.15%, and will pay the lower rate of 8.9%.
Got questions on PRSI changes, and how that affects pensions and payroll?
Our team can assist you in assessing and managing these and other changes. Our outsourced payroll service provides customised and compliant accounting solutions, implemented by experts, without the costs of employing full-time staff.
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