From 1 October 2025 new PRSI rules came into force that will apply through 2026: employee PRSI 4.2%; employer PRSI 11.25% (9% for weekly pay of €441 or less); weekly exemption €352; sliding credit up to €12/week for pay between €352–€424; and unearned income over €5,000/year liable. This guide explains who pays, how to check payroll and practical next steps for employees, employers and the self‑employed using Revenue’s official guidance.

Prerequisites — what to have ready - Your latest payslip, PPS number and employer payroll contact details. - Access to Revenue Online Service (ROS) or myAccount (see https://www.revenue.ie/en/employing-people/prsi/index.aspx). - Employers: payroll software, ROS credentials and your PAYE/PRSI filing calendar. What changed for 2026 — the headline figures From 1 October 2025 the new PRSI rates came into effect and will be the prevailing rates through 2026. The key figures are: - Employee PRSI rate: 4.2% of qualifying earnings. - Employer PRSI rate: 11.25% of qualifying earnings; reduced employer rate 9% where weekly pay is €441 or less. - Weekly exemption threshold: employees earning €352 or less per week are exempt from PRSI. - Sliding scale PRSI credit: up to €12 per week for weekly earnings between €352 and €424. - Unearned income (rental, investment) above €5,000 per annum is subject to PRSI. These changes affect take-home pay for employees and labour costs for employers. Small differences add up over a year — check payslips and payroll settings. Step-by-step: What employees should do Follow these steps to check and, if needed, correct your PRSI deductions: 1. Check your payslip every pay period. It should show PRSI deducted at 4.2% of qualifying earnings. If your weekly pay is €352 or less, PRSI should read zero. 2. Confirm your PRSI class. Many employees are in Class A; some public servants or self-employed people have different classes. Log into Revenue myAccount or contact payroll to verify your class and that contributions are being recorded correctly. 3. Look for the low-pay credit. If weekly pay is between €352 and €424, a sliding scale credit (max €12/week) should reduce employee PRSI. If it hasn’t been applied, ask payroll to apply it — employers usually implement this via payroll software. 4. Check year-to-date totals on Revenue. Use Revenue.ie to view recorded PRSI credits and contributions. Raise discrepancies with your employer or Revenue. 5. If you have unearned income (rent, dividends) over €5,000 annually, expect PRSI charges on that income. Keep records and declare the income to Revenue so liabilities can be settled through the appropriate Revenue process. Step-by-step: What employers must do Employers must update payroll and ensure correct filings. Follow these steps: 1. Update payroll rates. Set employee PRSI at 4.2% and employer PRSI at 11.25%. For employees with weekly pay of €441 or less, set employer PRSI at 9%. 2. Put in place the low-pay sliding scale credit. Ensure payroll software applies the up-to-€12-per-week credit for employees earning between €352 and €424 weekly. 3. Run a test payroll. Before the next pay date, run a test to check deductions and employer costs. Confirm net pay for employees and the employer PRSI liability. 4. File and pay via ROS. File PAYE and PRSI returns and make payments through ROS by the applicable deadlines for your business — check your filing calendar on Revenue.ie for exact dates. 5. Communicate changes. Tell staff what’s changed and where to check payslips. Keep documentation in case Revenue requests it or for your own records. Official sources and further reading - Revenue’s PRSI pages provide the authoritative details and should be the reference for any payroll updates: https://www.revenue.ie/en/employing-people/prsi/index.aspx - Use ROS/myAccount to confirm recorded contributions and to file returns or make payments.

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The PRSI changes effective 1 October 2025 set the rules for 2026: employee PRSI 4.2%; employer PRSI 11.25% (9% where weekly pay is €441 or less); an exemption at €352/week; and a sliding credit of up to €12/week. Check payslips, update payroll software, run test payrolls and use Revenue’s ROS/myAccount to confirm contributions and filing requirements.

This article was created with AI assistance.