Pay Related Social Insurance (PRSI): Rates and contribution rules

Ever looked at your payslip and wondered what the PRSI deduction is? On this page we explain how Pay Related Social Insurance (PRSI) works, the PRSI rates in Ireland, how to check your PRSI contributions, and the number of PRSI contributions you need to make to qualify for a pension.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

Most employees aged 16 or over pay PRSI, which is based on your income and the type of work you do – hence the name Pay Related Social Insurance. If you work, your employer pays a PRSI contribution to the Social Insurance Fund for you every week. PRSI may also be deducted from your wages, depending on how much you earn. Each employee has a PRSI contribution class, which determines the rate used to calculate the PRSI deducted from their pay.

PRSI is made up of:

• Employee PRSI, also known as social security or social insurance, which is deducted from your earnings
• Employer PRSI, which is paid by your employer and is payable on your earnings

The total amount paid for an employee in one pay period is called a PRSI contribution. PRSI is the main source of funding for social welfare payments.

The following PRSI rates apply to employees in Class A, which is the most common PRSI class for workers in Ireland, as well as the self-employed, who fall under Class S.

Employee PRSI rate

The PRSI rate for employees will increase from 4.1% to 4.2%, starting 1 October 2025. Self-employed individuals have the same PRSI rates as employees, and these will also increase in line with the employee rates.

Employer PRSI rates

In January 2025, the weekly earnings threshold for the 8.9% rate of employer PRSI increased from €496 to €527. Another change to the rates is coming on 1 October 2025. The PRSI rate for employers will increase from 11.15% to 11.25%. For weekly earnings of €527 or less, the rate will increase from 8.9% to 9%.

PRSI exemption

Employees earning €352 or less per week are exempt from PRSI. If you are self-employed and have a total annual income of less than €5,000, you are also exempt. 

PRSI credit

A sliding scale PRSI credit of up to €12 per week is available for those earning between €352 and €424 per week.

PRSI is calculated on your gross pay, including the value of any benefits you get from work. If you have weekly earnings of between €352 and €424, it’s important to note that the PRSI credit tapers, meaning that, for every euro you earn over €352.01, one-sixth of that amount is taken off your €12 credit.

To give an example of a Class A employee earning €380 per week under the current 4.1% PRSI rate:

1. Work out how much is over €352: €28

2. Reduce the PRSI credit: One-sixth of €28 = €4.67. So the PRSI credit is: €12 - €4.67 = €7.33

3. Calculate PRSI before the credit: €380 × 4.1% = €15.58

4. Apply the PRSI credit: €15.58 - €7.33 = €8.25

This employee pays €8.25 in PRSI.

So, how does PRSI work for someone earning €960 per week? In this case, there is no PRSI credit.

• Their current weekly PRSI contribution, based on the current 4.1% PRSI rate, is €39.36.

• Their new weekly PRSI contribution from October 2025 will be €40.32.

Calculated annually, this means the employee will have €49.92 less in their pay, starting in October 2025.

Please keep in mind that these examples are for illustrative purposes only.

In Ireland, PRSI classes are primarily decided by the individual’s type of employment. These classes are further broken down into subclasses based on the employee’s weekly gross earnings. This ultimately determines the employee’s PRSI rate and the benefits they are entitled to.

The PRSI tax bands have different classes for employees, self-employed individuals, and others. Some common PRSI classes include:

• Class A: Most employees (full-time and part-time) pay this class of PRSI. It doesn’t apply to those over 70 and in insurable employment, however, as this group contributes a lower class J PRSI rate.

• Class B: For civil servants and certain public sector workers.

• Class S: For self-employed individuals.

• Class D: For certain employees who are not entitled to all PRSI benefits (like certain public sector employees).

Employees in Class A generally have access to a full range of benefits, including the State Pension (Contributory) and jobseeker’s allowance, whereas people in Class S (self-employed) may not have access to some short-term benefits like illness benefit (unless they specifically opt into the system).

Your PRSI contributions are recorded on your social insurance record, and you can request your record of contributions, known as a contribution statement, on MyWelfare.ie.

If you think you have paid the wrong PRSI rate, you can also apply for a PRSI refund on MyWelfare.ie, or by getting in touch with the Department of Social Protection. Applications can be made for the last four complete tax years, and you will need to provide your employment and bank details.

You can choose to pay voluntary PRSI contributions if you are no longer an employee or if you are self-employed, and you are no longer making compulsory PRSI contributions. You can choose to pay voluntary contributions (if you are under 66 and meet the other conditions) if you:

• Are no longer covered by compulsory PRSI in Ireland
• Are no longer covered by PRSI on a compulsory or voluntary basis in another EU country

Under the Treatment Benefit Scheme, people who have made a specific number of PRSI contributions are entitled to dental, optical, and hearing services.

If you’re eligible, you’re entitled to a free dental check-up once a year, as well as a free eye test and a free hearing test every few years.

The number of PRSI contributions you need to have to qualify for the State Pension (Contributory) depends on your retirement date:

When PRSI rates change, it can be a good time to find ways of getting more from your money. If you want to grow your savings, opening a high-interest savings account is one way of putting your money to work. You can access a range of competitive savings accounts through the Raisin Bank marketplace by registering today.