From 1 January 2026 the standard employer PRSI rate is 11.25%, with a reduced 9% rate for weekly pay of €441 or less. This guide sets out the 2026 employer PRSI rates, the key weekly and monthly thresholds in euros, what employers must register for with Revenue, and a clear step-by-step process to calculate, report and pay employer PRSI using PAYE Modernisation and ROS. It includes worked examples, conversion tables and practical tips to avoid penalties.

Quick reference

Key figures and quick rules for 2026 at a glance:

  • Standard employer PRSI rate: 11.25% (rate rose by 0.1% on 1 Oct 2025).
  • Reduced employer PRSI rate: 9% where weekly pay is €441 or less.
  • Employer PRSI weekly threshold (aligned with minimum wage): €552 per week (from 1 Jan 2026).
  • Employee PRSI rate: 4.2% (from 1 Oct 2025).
  • Employee PRSI exemption threshold: weekly earnings €352 or less.
  • Sliding-scale PRSI credit for employees: up to €12 per week where weekly pay is between €352 and €424.
  • National minimum wage from 1 Jan 2026: €14.15 per hour (this sets the €552 weekly threshold at a 39-hour week).
  • Monthly equivalents (use 52/12 = 4.3333 multiplier): €552 pw = €2,392 pm; €441 pw = €1,909 pm; €352 pw = €1,525 pm; sliding scale upper €424 pw = €1,837 pm.
  • Payroll reporting: real-time under PAYE Modernisation to Revenue, see Revenue.ie/payemodernisation and submit each pay date.

Prerequisites: what you need before you start payroll in 2026

Get these in place before running your first 2026 payroll run. Missing any of them will slow you down.

  • Register as an employer with Revenue and set up ROS access (Revenue Online Service). Use Revenue’s PAYE Modernisation hub: https://www.revenue.ie/en/employing-people/doing-paye/paye-modernisation/index.aspx
  • Ensure payroll software is certified for PAYE Modernisation and updated with the 2026 bands and rates. If you use a third-party payroll provider, confirm they've applied the 11.25% / 9% employer bands and the new minimum wage.
  • Collect each employee’s PPS number, full name as on their PPS, pay frequency (weekly/fortnightly/monthly), start date, and tax credit details. Most employees are PRSI Class A, confirm class if someone is a public servant, self-employed director, or has a special arrangement.
  • Confirm company bank details and set up payment method for Revenue, either one-off payments via ROS or a direct debit facility through ROS to help avoid late payments.
  • Decide and document pay policy for benefits in kind and bonuses. Employer PRSI is due on most cash pay, overtime, bonuses and certain benefits-in-kind, include these in payroll calculations.

Step-by-step: calculate, report and pay employer PRSI (2026)

  1. Step 1. Verify PRSI class and pay period.

    Confirm the employee’s PRSI class (usually Class A) and the pay period used (weekly, fortnightly, monthly). PRSI liability is assessed on gross pay for that pay period. The employee PRSI exemption applies where weekly earnings are €352 or less, the employee won't pay PRSI in that week, but the employer may still have an obligation to pay employer PRSI depending on the gross pay and band.

  2. Step 2. Decide which employer PRSI rate applies.

    Apply the reduced 9% employer rate for weekly pay at or below €441. For weekly pay above €441, apply the standard 11.25% employer rate.

    For monthly or other frequencies, convert thresholds using 52/12 (multiply weekly threshold by 4.3333) and apply the rate to the gross pay for that pay period.

  3. Step 3. Determine liable pay.

    Mastheads

    Employer PRSI is calculated on gross remuneration: wages, overtime, shift allowances, bonuses and most taxable benefits in kind. Certain statutory payments (for example, some redundancy payments beyond specified caps) and pension-related employer contributions can have different treatment, record and code these items clearly in payroll so your software treats them correctly.

  4. Step 4.

    Calculate the employer PRSI amount.

    Worked examples for clarity:

    • Weekly pay €600, employer PRSI at 11.25% = €600 × 11.25% = €67.50 per week.
    • Weekly pay €430, employer PRSI at 9% = €430 × 9% = €38.70 per week.
    • Monthly pay equivalent: if weekly threshold €552 = €2,392 per month. A monthly gross salary of €3,000 attracts employer PRSI of €3,000 × 11.25% = €337.50 for that month.

  5. Step 5. Report the payroll submission to Revenue in real time.

    With PAYE Modernisation you must submit details to Revenue for each pay date. Use certified payroll software to send the payroll submission (gross pay, PAYE, employee PRSI, employer PRSI, USC and any statutory deductions) to Revenue on or before the payday. The Revenue PAYE Modernisation hub explains the XML/JSON submission format and the fields required; most payroll packages handle this automatically.

  6. Step 6. Pay the liability to Revenue via ROS.

    Make the payment using ROS (https://www.ros.ie) or through your bank’s Revenue payment facility. Set up a monthly payment schedule and, where available, a direct debit to avoid late payment.

    Keep a record of the ROS receipt ID or bank reference for reconciling your ledgers.

  7. Step 7. Year-end finalisation.

    At year-end finalise your payroll in your software and submit the end-of-year finalisation to Revenue. For the 2026 tax year that finalisation must be completed in the early weeks of 2027 (employers should finalise by 31 January 2027) so that employees can access their end-of-year statements. Confirm that all pay periods for 2026 are included and that any amendments have been made before you finalise.

  8. Thing is, step 8. Correct errors quickly.

    If you spot a mistake, submit an amended payroll submission to Revenue for the affected pay date(s). Most payroll packages let you flag an amendment and reissue correct figures. Keep staff informed if changes affect their take-home pay or tax credits.

Tips for smoother PRSI handling in 2026

  • Reconcile payroll to your bank and to Revenue statements monthly. Reconciliation helps catch posting errors and timing differences early.
  • Check payroll software updates after each Revenue rate change, and confirm any provider updates for 2026 have been applied before the first pay run.
  • Keep clear records of pay components, benefits in kind and employer contributions so any queries from Revenue can be answered quickly.
  • Set up a ROS direct debit or standing arrangement with your bank to reduce the risk of late payments and penalties.
  • Communicate clearly with staff about pay, deductions and any amendments; run a test payroll if you are changing software or pay schedules.

Related Articles

Employer PRSI in 2026 is a modest increase from prior years, standard employer PRSI sits at 11.25% and the lower 9% band applies where weekly pay is €441 or less. Employers must register with Revenue, use PAYE Modernisation‑certified payroll software, submit payrolls in real time and make payments through ROS. Convert weekly thresholds to monthly amounts using the 52/12 rule for non‑weekly pay frequencies, finalise the year‑end submissions by 31 January 2027, and keep six years of payroll records. Check revenue.ie for specific guidance and use direct debit or scheduled ROS payments to avoid late payments and the administration that follows.

This article was created with AI assistance.