Rates last updated: 10 October 2026 · How we verify
PRSI Went Up on 1 October 2026: What Changes on Your Payslip
If your October payslip shows slightly more deducted than September's, you haven't been put on the wrong tax basis. Employee PRSI rose from 4.2% to 4.35% on 1 October 2026 — and it's the third step of a five-year plan that will keep going until 2028.
The change itself is small. On a €60,000 salary it costs €7.50 a month. But it's worth understanding, because PRSI works differently from income tax and USC — and that difference catches people out when they come to claim a refund.
What changed on 1 October
In short: from 1 October 2026 employee Class A PRSI is 4.35% (from 4.2%), the employer higher rate 11.40% (from 11.25%), the employer lower rate 9.15% (from 9.00%) and self-employed Class S 4.35%, each up 0.15 points under the PRSI Roadmap. The €352-a-week exemption, the credit of up to €12 a week between €352.01 and €424, and the absence of any ceiling are unchanged.
| Up to 30 September 2026 | From 1 October 2026 | |
|---|---|---|
| Employee PRSI (Class A) | 4.2% | 4.35% |
| Employer PRSI — higher rate | 11.25% | 11.40% |
| Employer PRSI — lower rate (weekly pay up to €552) | 9.00% | 9.15% |
| Self-employed PRSI (Class S) | 4.2% | 4.35% |
The main PRSI rates all went up by 0.15 percentage points at the same time, as the next step of the government's PRSI Roadmap. It isn't a Budget measure: the whole schedule was agreed in advance. (If you're over 66 and receiving the State Pension (Contributory), or over 70, you still pay no employee PRSI.)
One related change is coming in January. Budget 2027 raises the weekly pay threshold for the higher employer rate from €552 to €600 from 1 January 2027. That affects what your employer pays, not your own PRSI.
What didn't change:
- The exemption. If you earn €352 or less a week, you still pay no employee PRSI at all.
- The PRSI credit. Between €352.01 and €424 a week, a credit of up to €12 a week reduces your PRSI. It shrinks by one-sixth of every euro you earn above €352.01, and disappears at €424.
- No ceiling. Above €424 a week, you pay 4.35% on all your earnings, not just the part above the threshold. There's no upper limit.
What it costs you
In short: €3.75 a month more on €30,000, €7.50 on €60,000 and €12.50 on €100,000 (€45, €90 and €150 over a full year); €0.90 a week more on €600 a week. For 2026 as a whole a salaried employee pays nine months at 4.2% and three at 4.35%, €2,542.50 on €60,000, an average of 4.2375%.
Here's the change for a range of salaries. Monthly figures for salaried employees, weekly figures for hourly and weekly-paid workers.
| Pay | PRSI before | PRSI from 1 October | Extra per month or week | Extra over a full year |
|---|---|---|---|---|
| €30,000 a year (€2,500 a month) | €105.00 | €108.75 | €3.75 a month | €45.00 |
| €60,000 a year (€5,000 a month) | €210.00 | €217.50 | €7.50 a month | €90.00 |
| €100,000 a year (€8,333.33 a month) | €350.00 | €362.50 | €12.50 a month | €150.00 |
| €600 a week | €25.20 | €26.10 | €0.90 a week | €46.80 |
| €900 a week | €37.80 | €39.15 | €1.35 a week | €70.20 |
Someone earning €400 in a week falls inside the credit band.
| Before | From 1 October | |
|---|---|---|
| PRSI at the full rate | €400 × 4.2% = €16.80 | €400 × 4.35% = €17.40 |
| PRSI credit: €12 − (€400 − €352.01) ÷ 6 | −€4.00 | −€4.00 |
| PRSI deducted | €12.80 | €13.40 |
The credit is the same before and after — it's the rate that changed. That week costs 60 cent more.
What it means for 2026 as a whole. Because the new rate only applies from October, a salaried employee pays 4.2% for nine months and 4.35% for three. On €60,000 that's €1,890 plus €652.50 — €2,542.50 for the year, the same as an average rate of 4.2375%. That's the figure behind the PRSI line in our country tax comparisons. In 2027, you'll pay 4.35% until the next step on 1 October 2027.
Why PRSI keeps going up
In short: the PRSI Roadmap agreed in late 2023 funds keeping the State Pension age at 66 with increases every 1 October: 4.1% in 2024, 4.2% in 2025, 4.35% in 2026, then 4.5% in 2027 and 4.7% in 2028 as planned. By 2028 the employee rate is 0.7 points above the pre-roadmap 4.0%, €420 a year more on €60,000.
The government decided to keep the State Pension age at 66. To support that decision, and to reduce future shortfalls in the Social Insurance Fund, it committed to a PRSI Roadmap, agreed in late 2023: a series of increases spread over five years, each taking effect on 1 October.
| Step | Employee rate | Employer higher rate | Employer lower rate |
|---|---|---|---|
| Before the roadmap | 4.0% | 11.05% | 8.8% |
| October 2024 | 4.1% | 11.15% | 8.9% |
| October 2025 | 4.2% | 11.25% | 9.0% |
| 1 October 2026 | 4.35% | 11.40% | 9.15% |
| October 2027 (planned) | 4.5% | 11.55% | 9.3% |
| October 2028 (planned) | 4.7% | 11.75% | 9.5% |
By 2028 the employee rate will be 0.7 percentage points higher than before the roadmap started. On a €60,000 salary, that's €2,820 a year instead of €2,400 — €420 more. The 2027 and 2028 steps are the plan as agreed; future budgets can change PRSI rules, so treat those two rows as the expected path rather than a certainty.
PRSI is not like income tax or USC
In short: PRSI is charged pay period by pay period with no annual reconciliation, so correctly charged PRSI is not refunded when you claim back income tax and USC. Emergency tax does not change your PRSI, pension contributions do not reduce it, and the contributions build your social insurance record, which stays with you if you leave Ireland.
This is the part that matters if you're expecting a refund.
PRSI is charged pay period by pay period. Each week or month stands on its own: if you earn more than €352 that week, you pay PRSI on all of it. There's no annual calculation at the end of the year.
That means PRSI isn't refunded in the way income tax and USC can be. When you claim back tax — because you arrived or left mid-year, spent weeks on emergency tax, or missed a credit — Revenue reviews your income tax and USC. PRSI that was correctly charged stays charged. See claiming PAYE tax back for the first time.
Emergency tax doesn't change your PRSI. Being on emergency tax puts your income tax and USC on the emergency basis, but PRSI is charged at your normal class. So the October increase is not a sign that something's wrong with your tax credits. See emergency tax in Ireland.
Pension contributions don't reduce PRSI. A regular contribution deducted through payroll reduces the pay that income tax is charged on, but PRSI is still charged on your gross pay. See how to read your Irish payslip.
But PRSI isn't lost. Your contributions build your social insurance record, which decides whether you qualify for contributory benefits such as the State Pension (Contributory). If you leave Ireland, that record stays — see leaving Ireland and the refund you might be owed.
If you're self-employed
In short: Class S PRSI applies to self-employed people aged 16 to 66 with income of at least €5,000 a year, paid through the annual return. For 2026 income the rate is a blended 4.2375%, with a minimum payment of €650.
Self-employed people aged 16 to 66 pay Class S PRSI on their income if it's at least €5,000 a year, through their annual tax return. Because the rate changed partway through the year, the rate for 2026 income is a blended 4.2375%, with a minimum payment of €650. You'll see this when you file your 2026 return in 2027.
What to check on your October payslip
In short: nothing to do, the employer applies the new rate. Check that PRSI is 4.35% of gross pay (less if you are in the €352.01 to €424 credit band), that income tax and USC did not jump at the same time, and that your credits are the full €4,000 a year if you are single and in one job.
You don't need to do anything — your employer applies the new rate automatically. But it's a good moment to check three things:
- PRSI is 4.35% of your gross pay for the period, or less if you're in the €352.01–€424 credit band. If it's different, ask your payroll team.
- Your income tax and USC haven't moved unexpectedly. If they jumped at the same time, the cause is something else — a new Revenue Payroll Notification, a change in your credits, or emergency tax — and that's worth looking into.
- Your tax credits are the full €4,000 a year if you're single and in one job, split across the year. See the top Irish tax deductions you could be missing.
If something on your payslip doesn't add up, our Payslip Review service checks it line by line. The full background on how Irish tax works is in the complete guide, and the official PRSI rates are on Citizens Information's page on paying social insurance.
If you've worked in Ireland since 2022, the more useful question isn't the extra €7.50 a month — it's whether you've claimed the four years of income tax and USC that are still open. 2022 closes permanently on 31 December 2026.
Related reading
Questions we get asked
Why did my take-home pay drop in October?
If the drop is small — a few euro a month — it's almost certainly the PRSI increase from 4.2% to 4.35% on 1 October 2026. On €60,000 a year it's €7.50 a month. If the drop is bigger, look at your income tax and USC lines: something else has changed.
Can I claim the PRSI increase back?
No. PRSI is charged on each pay period, and it isn't part of the end-of-year income tax review. A tax refund covers income tax and USC.
I earn under €352 a week. Does this affect me?
No. You still pay no employee PRSI. If you earn between €352.01 and €424, you pay PRSI at the new rate, reduced by the PRSI credit.
Will PRSI go up again?
Under the agreed roadmap, yes: to 4.5% on 1 October 2027 and 4.7% on 1 October 2028. Future budgets can change PRSI, so check the rate when each change is due.
Is Irish PRSI high compared to other countries?
No — it's among the lowest employee social contribution rates in our comparisons. On the continent, employees typically pay far more; the UK is the exception at higher pay, where National Insurance falls to 2% above £50,270. See Ireland vs Europe.