# What is PRSI (Ireland)?

Country: Ireland

Pay Related Social Insurance funds Ireland's Social Insurance Fund. From 1 October 2026 most employees pay Class A PRSI at 4.35%, and employers pay 11.40% when weekly pay is over €552, or 9.15% at €552 or less. Self-employed people pay Class S at 4.35%.

## Current rate (Calendar year aligned with PAYE)

From 1 October 2026: employee 4.35% (Class A). Employer 9.15% on weekly pay up to €552, 11.40% above €552. Class S 4.35% for the self-employed (minimum €650 a year).

## Example

An employer paying €600 a week pays €68.40 employer PRSI (€600 × 11.40%, because weekly pay is over €552). The employee pays €26.10 (€600 × 4.35%).

## How PRSI (Ireland) works in Ireland

PRSI (Pay Related Social Insurance) is a compulsory social insurance contribution paid by employees, employers, and self-employed people in Ireland. It funds the Social Insurance Fund, which pays benefits including Jobseeker's Benefit, Illness Benefit, Maternity Benefit, State Pension (Contributory), and other social welfare payments. Entitlement to these benefits depends on having sufficient PRSI contributions (paid weeks) recorded on your social insurance record.

**PRSI classes and rates (from 1 October 2026)**

The most common class is Class A, paid by most employees in the private sector, public servants hired from 6 April 1995, and company directors who own less than 50% of the company. Class A splits into subclasses by weekly pay:

| Subclass | Weekly pay | Employee | Employer |
|---|---|---|---|
| A0 | €38 to €352 | Nil | 9.15% |
| AX | €352.01 to €424 | 4.35%, less the PRSI Credit | 9.15% |
| AL | €424.01 to €552 | 4.35% | 9.15% |
| A1 | Over €552 | 4.35% | 11.40% |

The employer rate applies to the whole week's pay, not just the part above €552, so weekly pay of €560 takes 11.40% on all €560. There is no upper earnings ceiling.

The PRSI Credit reduces the employee charge on weekly pay between €352.01 and €424. It is €12 a week at €352.01 and falls by one sixth of the pay above €352.01, so it is gone by €424.

Class S applies to the self-employed, including sole traders, directors who own or control 50% or more of the company, and some people with rental or investment income. Anyone with income of €5,000 or more a year pays 4.35% on all of it, with a minimum payment of €650. Because the rate changed part way through the year, Class S on 2026 self-assessed income is charged at a blended 4.2375%.

Class D applies to established civil servants and some public servants employed before April 1995. It has a lower employee rate (0.9%) but provides fewer benefits.

Class J applies to employees earning less than €38 per week, regardless of age. It covers occupational injuries only.

**The yearly PRSI increases**

PRSI is rising in steps each October to fund the Social Insurance Fund. The higher employer rate went from 11.05% to 11.15% on 1 October 2024, to 11.25% on 1 October 2025 and to 11.40% on 1 October 2026. The employee rate moved from 4% to 4.1%, 4.2% and now 4.35% on the same dates. The weekly threshold for the higher employer rate has been €552 since 1 January 2026. Further increases are planned, so check your payroll software picks up each new rate.

**What PRSI contributions fund (and what they don't)**

Class A contributions give entitlement to the widest range of social insurance benefits, including:
- Jobseeker's Benefit (after 6 months of Class A contributions)
- Illness Benefit (104 weeks per claim, after 13 paid weeks)
- Maternity / Paternity / Parent's Benefit
- State Pension (Contributory): requires 520+ paid weeks
- Invalidity Pension
- Treatment Benefit (dental and optical)

Class S contributions (self-employed) provide fewer benefits: notably, self-employed people cannot claim Jobseeker's Benefit if their business ceases. They are entitled to Illness Benefit from 2017, State Pension (Contributory), and treatment benefit, but not Maternity Benefit (this is accessed through a different mechanism for self-employed mothers via a class S entitlement introduced in 2017).

**PRSI vs employer payroll costs**

Employer PRSI is a significant employment cost on top of gross salary. For a €50,000 salary (about €962 a week), employer PRSI at 11.40% adds €5,700 a year to the total employment cost. When budgeting for anyone paid over €552 a week, total payroll cost = gross salary + 11.40% employer PRSI (plus employer pension contributions if applicable).

**PRSI for company directors**

A director who owns or controls 50% or more of the company's shares, directly or indirectly, pays Class S rather than Class A, even if they receive a salary through PAYE. This is important to understand because Class S provides fewer benefits. Directors below 50% are assessed on how they work for the company and can be Class A or Class S. The 15% 'proprietary director' test is an income tax rule, not the PRSI one.

**Checking your PRSI record**

Every individual can view their PRSI contribution history through myAccount on Revenue's online service. A full State Pension (Contributory) requires 520 paid weeks: it is worth checking your record periodically to identify gaps, particularly if you have been self-employed, on a career break, or living abroad.

Source: https://www.gov.ie/en/publication/2dcf78-prsi-class-a-rates/

## Related terms

- [PAYE (Ireland)](https://accounts-os.com/ie/glossary/paye-ireland)
- [USC (Universal Social Charge)](https://accounts-os.com/ie/glossary/usc-ireland)