The taper purpose
PRSI Class A applies once weekly earnings exceed €352. Without relief the first euro over this threshold would attract full 4.2 percent PRSI on the entire pay, creating a cliff edge. The taper credit smooths this transition.
How the credit works
Maximum credit: €12 per week.
The credit applies in full at €352 and reduces by one sixth of every euro earned above €352, hitting zero at €424 per week.
Formula:
- Credit = €12 minus ((Pay minus €352) divided by 6)
- If pay is at or below €352: Class A does not apply
- If pay is at or above €424: no credit
Worked example, €352 weekly
Pay: €352
- Standard PRSI: €352 x 4.2 percent = €14.43
- Credit: €12
- Net PRSI: €2.43
Worked example, €388 weekly
Pay: €388
- Standard PRSI: €388 x 4.2 percent = €15.91
- Credit: €12 minus ((€388 minus €352) / 6) = €12 minus €6 = €6
- Net PRSI: €9.91
Worked example, €424 weekly
Pay: €424
- Standard PRSI: €424 x 4.2 percent = €17.38
- Credit: €0
- Net PRSI: €17.38
Important detail, employer PRSI is not credited
The credit reduces only employee PRSI. Employer PRSI continues at the full rate (8.9 percent below €441, 11.15 percent above).
How it appears on payslips
Most payroll systems calculate PRSI net of credit and show only the final figure. Some itemise the credit on a separate line.
Why the figures matter
Without the credit, an employee at €352 would face a cliff of €14.43 per week. The credit reduces this to €2.43, making the move from below threshold pay to within Class A almost neutral.
Educational notice
This article describes the 2026 PRSI taper credit at the time of writing. Always verify current parameters with the Department of Social Protection or Revenue.ie.