## What changes
From 1 October 2026 the following rates increase by 0.1 percentage points:
| Class | Until 30 Sept 2026 | From 1 Oct 2026 |
| --- | --- | --- |
| Class A1 employee | 4.1 percent | 4.2 percent |
| Class A1 employer over €441 | 11.15 percent | 11.25 percent |
| Class A0 employer at or below €441 | 8.9 percent | 9.0 percent |
| Class S self employed | 4.1 percent | 4.2 percent |
## Why the change
The increase is part of a multi year programme to gradually fund the State Pension as Ireland's demographic profile shifts. Successive small rises avoid sharp single year jumps.
## Worked example, €60,000 salary employee
Aine earns €60,000 per year, paid monthly at €5,000.
Before 1 October:
- Employee PRSI per month: €5,000 x 4.1 percent = €205
From 1 October:
- Employee PRSI per month: €5,000 x 4.2 percent = €210
Quarterly cost increase: €15.
## Worked example, employer cost
For the same Aine the employer pays:
Before 1 October:
- Employer PRSI per month: €5,000 x 11.15 percent = €557.50
From 1 October:
- Employer PRSI per month: €5,000 x 11.25 percent = €562.50
Quarterly cost increase: €15.
## Payroll system implications
Payroll providers will update tables automatically. Employers using in house systems should:
- Update PRSI rate tables
- Ensure year to date totals correctly span both rate periods
- Test pay date crossover (a pay run for September period in early October may need attention)
## Pay reference period
The cut over date is by pay date, not pay period. A weekly pay date of 2 October 2026 uses the new rate even if the pay period was for the last week of September.
## Cumulative reporting
PAYE Modernisation reporting handles the change transparently provided the payroll software is up to date. Employees see a small drop in net pay from the first October pay date.
## Educational notice
Rates can change with future budgets. Always confirm current values with Revenue.ie or the Department of Social Protection.