PRSI changes imminent in Ireland – is your payroll prepared?
All PRSI contribution rates will increase, once again, by 0.15% from 1 October 2026.
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 was in October 2025, and the third is on Oct 1st, 2026.
- 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 each year for 5 years.
|
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) also increased by €150 to €650 from 1 October 2024. It has not been raised since, but the percentage rate applied to income above the minimum threshold has changed.
Class A threshold raises in 2026
Got questions on PRSI changes, and how that affects pensions and payroll?
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