PRSI rates will increase again from 1 October 2026, affecting both employees and employers.
For most employees paying Class A PRSI, the main changes are:
| Up to 30 Sept 2026 | From 1 Oct 2026 | |
|---|---|---|
| Employee PRSI | 4.20% | 4.35% |
| Employer PRSI – lower rate | 9.00% | 9.15% |
| Employer PRSI – standard rate | 11.25% | 11.40% |
The increase is therefore 0.15 percentage points for both employee and employer PRSI.
The Class A employer PRSI threshold remains at €552 per week. From 1 October, the employer rate is 9.15% for weekly earnings up to €552 and 11.40% where weekly earnings exceed €552. Employees earning €352 or less per week continue to pay no employee PRSI.
Which payrolls are affected?
The important date is the pay date.
Payrolls with a pay date on or after 1 October 2026 must use the new PRSI rates, even where some or all of the work relates to September. This follows the normal PAYE reporting approach where deductions are calculated according to when the payment is made.
For example, an employee paid on:
- 30 September 2026 – the existing PRSI rates apply.
- 1 October 2026 or later – the new PRSI rates apply.
What does the change mean in practice?
For an employee earning €1,000 per week and paying standard Class A PRSI:
Employee PRSI
- Before 1 October: €42.00
- From 1 October: €43.50
- Increase: €1.50 per week
Employer PRSI
- Before 1 October: €112.50
- From 1 October: €114.00
- Increase: €1.50 per week
The individual change is relatively small, but employers should take the increased employer cost into account across their total payroll.
What do Parolla users need to do?
Nothing.
Parolla will automatically apply the appropriate PRSI rates based on the pay date of the payroll.
If your pay date is before 1 October, the old rates will be used. If the pay date is on or after 1 October, Parolla will calculate PRSI using the new rates.
If you opened or built the payroll before 1 October, click Rebuild Payslips within the payslip to apply the new PRSI rates.
The change also applies to a number of other PRSI classes. For example, the Class S rate for self-employed contributors increases from 4.20% to 4.35% from 1 October 2026.
The Department of Social Protection publishes the full PRSI contribution rates and classes on gov.ie.