If you want to check PRSI for 2025 pay or compare years, this guide shows you how to calculate employee and employer PRSI, highlights rate changes in 2024–25, and helps you get accurate figures for 2025 and 2026 reporting. It includes worked examples, the official tools to use, and common payroll traps to avoid.

Quick reference

- Employee PRSI rate: rose from 4.0% to 4.1% on 1 October 2024, and to 4.2% on 1 October 2025 — so calendar 2026 uses 4.2% for earnings subject to PRSI.

- Composite reporting used 4.125% for 2025 where payroll reporting covered both 4.1% and 4.2% periods (nine months at 4.1% and three months at 4.2%). For 2026 use the full-year 4.2% employee rate for most PAYE employees.

- Employer PRSI (Class A typical): commonly 11.05% on reckonable pay for most employees (note some employees and sectors attract different employer rates or reduced rates — see employer PRSI range below).

- Typical PRSI class for PAYE employees: Class A. Self-employed normally pay Class S contributions — Class S is a flat-rate contribution on self-employed income (see Revenue and Department of Social Protection guidance for thresholds).

- Official calculators and pages: Revenue PAYE/Tax credit calculator: https://www.revenue.ie/en/online-services/calculators-and-tools/paye-income-tax-credits-calculator/index.aspx; Department of Social Protection PRSI guidance and SW14 user guide: https://www.gov.ie/ (search 'PRSI Contribution Rates and User Guide SW14').

Why 2025 matters when you're checking PRSI in 2026

Here's the thing — late changes in 2024 and the step on 1 October 2025 affect annual totals and year-to-date reporting. The 2025 tax year includes two employee PRSI rates: 4.1% for the period 1 January–30 September 2025, and 4.2% from 1 October–31 December 2025. Payroll systems and annual summaries therefore often use a blended or composite rate — the calendar 2025 composite works out to 4.125% (that’s nine months at 4.1% and three months at 4.2%).

Mastheads

But from 1 January 2026 most PAYE payruns use 4.2% on reckonable earnings. Still, if you’re reconciling 2025 payrolls in early 2026 you must account for the mid-year change. That’s especially true for finalising pay records, preparing employee statements in payroll software and checking employer PRSI liabilities for 2025.

Prerequisites

Before you start calculating, gather:

  • Your gross pay for the pay period (weekly, fortnightly, monthly or annual gross).
  • The specific pay date or pay period end date — that tells which employee PRSI rate applied (pre‑ or post‑1 Oct 2025).
  • Your PRSI class for the person (most PAYE employees are Class A; self-employed normally Class S; some jobs attract Class J, G, M etc.).
  • Details of reckonable and non‑reckonable pay on the payslip (pension contributions, PRSI-exempt allowances, certain reimbursements).
  • Access to Revenue’s PAYE calculator, your payroll software, or the employee’s payslip PDF for cross-checking.

Step-by-step: Manual PRSI calculation (employee) for 2025 and 2026

Use these numbered steps for a manual check. The online method below will save time for blended periods, but it's worth knowing the mechanics.

  1. Confirm PRSI class. Most full-time PAYE staff are Class A. Confirm the class on the payslip or on Revenue’s PAYE details. Class A normally means employee PRSI at the employee rate (4.2% in 2026) applies to reckonable pay.
  2. Establish reckonable pay. Start with gross pay. Subtract any non-reckonable items — for instance certain travel allowances or specific employee social welfare reimbursements can be non-reckonable. Employer pension contributions aren't part of employee reckonable pay.
  3. Check the applicable rate for the pay date. If the pay date is between 1 January 2025 and 30 September 2025 use 4.1%. For pay dates from 1 October 2025 use 4.2%. For 2026 use 4.2% for the whole year unless a later rate change happens.
  4. Calculate employee PRSI. Multiply reckonable pay by the applicable rate. Example: monthly reckonable pay €3,000. Employee PRSI at 4.1% = €123 per month; at 4.2% = €126 per month. For a 2025 employee who earned the same monthly sum all year, total employee PRSI = (9 × €123) + (3 × €126) = €1,107 + €378 = €1,485 for the year — which reflects the 4.125% composite approach.
  5. Round as payroll rules require. Payroll software usually rounds to cents on each payrun. If doing manual totals, keep cents and reconcile to payroll reports.
  6. Record and report. Ensure the figure is entered in payroll returns and year-end statements — Revenue’s PAYE modernisation requires pay and PRSI details for each payrun to be reported in real time via payroll software.

Online method (quick and reliable)

Try Revenue’s PAYE/Tax credit calculator to quickly check your figures. Enter gross pay, frequency, tax credits and PRSI class and the tool will show PAYE, USC and PRSI deductions. Link: https://www.revenue.ie/en/online-services/calculators-and-tools/paye-income-tax-credits-calculator/index.aspx.

Most payroll software handles blended years automatically. If your software is current, it applies 4.1% or 4.2% based on pay dates and generates year-to-date totals and composite figures for employer reports. For manual payrolls or spreadsheets, use the step-by-step method above and note the pay dates.

Employer PRSI calculation

Most private-sector employers pay Class A employer PRSI at 11.05% on reckonable pay. But there are variations:

  • Certain low-pay schemes, employers with PRSI-exempt employees, and some sectoral reliefs reduce the rate.
  • There’s no universal employer PRSI-free allowance — but small employers and some community/employment supports may get reliefs.
  • Example calculation: employer PRSI on monthly reckonable pay €3,000 at 11.05% = €331.50 per month.

Employers must report and pay PRSI contributions to Revenue and the Department of Social Protection via payroll submissions. PAYE modernisation requires each payrun to be reported. Annual reconciliations are done through payroll reports and employer payment files to Revenue.

Worked examples

Example A — single month, PAYE Class A, pay date 15 Nov 2025 (post‑1 Oct 2025):

  • Gross pay: €3,000
  • Reckonable pay: €3,000
  • Employee PRSI at 4.2% = €126.00
  • Employer PRSI at 11.05% = €331.50

Example B — full calendar 2025, same monthly pay, composite employee PRSI: nine months at 4.1% and three months at 4.2'. Total employee PRSI for the year = €1,485 (as calculated above). Employer PRSI for the year at 11.05% = 12 × €331.50 = €3,978.

Tips

  • Always use the pay period end date to determine the correct PRSI rate. Payroll systems usually date stamp payslips — check that.
  • Keep payslip records. If you need to amend a payrun later, you'll need the original payslip and submission details to adjust Revenue records.
  • Use Revenue’s online tools and your payroll software vendor’s update notes. Employers must keep payroll software up to date to reflect rate changes and composite reporting rules.
  • For self-employed income (Class S) check the filing dates for PRSI payments — Class S liabilities are typically paid through normal self-assessment or Pay and File channels and affect entitlements differently to PAYE PRSI.

Common mistakes to avoid

  • Applying a single-year rate to a mixed-year pay period — for 2025 don't use 4.2% for the whole year; use the composite or calculate by period.
  • Forgetting to strip out non-reckonable pay items — travel reimbursements, some allowances and employer pension payments can be non-reckonable and shouldn't attract PRSI.
  • Rounding errors over multiple payruns — small cent differences compound. Use payroll software where possible or reconcile monthly.
  • Not updating payroll software after rate changes — that causes reporting mismatches and can trigger Revenue queries.
  • Mistaking PRSI class — some part-time, casual or foreign workers have different classes. Check payslip PRSI class and Revenue records.

Related Articles

If you’re checking PRSI for 2025 pay, use Revenue’s PAYE calculator for an instant estimate and check PRSI class and pay dates carefully — the 1 October 2025 step to 4.2% is the key change that carries into 2026. For employers, ensure payroll software and PAYE modernisation submissions reflect the correct employee rate and employer liabilities, and reconcile monthly to avoid year‑end surprises.

This article was created with AI assistance.