What changes
From 1 October 2026 every PRSI rate increases by exactly 0.15 percentage points:
| Class | Until 30 Sept 2026 | From 1 Oct 2026 | | --- | --- | --- | | Class A1 employee | 4.2 percent | 4.35 percent | | Class A1 employer over €552 a week | 11.25 percent | 11.40 percent | | Class A0/AX/AL employer at or below €552 a week | 9.00 percent | 9.15 percent | | Class S self employed | 4.2 percent | 4.35 percent | | Class J employer | 0.70 percent | 0.85 percent | | Class K | 4.2 percent | 4.35 percent |
Source: Department of Social Protection, SW14 Contribution Rates and User Guide 2026.
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 4.2 percent = €210.00
From 1 October:
- Employee PRSI per month: €5,000 x 4.35 percent = €217.50
Monthly cost increase: €7.50. Over the final quarter (October, November, December): €22.50.
Worked example, employer cost
For the same Aine the employer pays:
Before 1 October:
- Employer PRSI per month: €5,000 x 11.25 percent = €562.50
From 1 October:
- Employer PRSI per month: €5,000 x 11.40 percent = €570.00
Monthly cost increase: €7.50. Over the final quarter: €22.50. Aine's weekly equivalent pay of about €1,154 is above the €552 threshold, so the higher employer rate applies.
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.