IRISH PAYROLL
PRSI, explained.
PRSI funds Ireland's social-welfare system — the State Pension, jobseeker, illness and maternity benefits. Find your class, see the 2026 rate, and learn how the tapered credit protects low earners.
Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or Revenue.
The 2026 employee PRSI rate (Class A1)
Most private-sector employees are Class A1. Employee PRSI is charged on your gross weekly earnings. The rate steps up part-way through 2026 as part of the phased increases funding the State Pension.
| Period in 2026 | Class A1 employee rate |
|---|---|
| 1 January to 30 September 2026 | 4.2% |
| From 1 October 2026 | 4.35% |
The rate in force on your pay date applies. Your employer pays PRSI on top of this. Class A1 employee PRSI is not charged where weekly earnings are €352 or less.
The weekly exemption and the tapered credit
- Earnings of €352 a week or less: no employee PRSI is charged.
- Earnings between €352.01 and €424 a week: a tapered PRSI credit reduces the charge on a sliding scale, so a small pay rise does not trigger a large PRSI jump.
- Earnings above €424 a week: the credit has fully phased out and the full Class A1 rate applies.
- PRSI is calculated week by week, so an unusual week can move your PRSI even when your annual position is normal.
Classes and what PRSI buys you
- Class A: most private-sector employees (the common case).
- Classes B, C and D: specific public-sector workers, including some pre-1995 civil servants and Gardaí.
- Class S: self-employed people.
- Each PRSI week counts toward the State Pension (Contributory) — most people need 520 paid contributions across their working life. Check your record on myWelfare.ie.
Read more on PRSI
PRSI Class A
The most common class for private-sector employees.
PRSI methodology
How PayslipIQ computes PRSI and the credit.
PRSI Class S
Self-employed PRSI rules.
Tapered PRSI credit
How the credit eases the cliff edge for low earners.
PRSI at age 66
How PRSI changes at State Pension age.
Benefits funded by PRSI
State Pension, jobseeker, illness, maternity.
Common questions
What is the employee PRSI rate in 2026?
For most Class A1 employees, employee PRSI is 4.2% of gross earnings from 1 January 2026, rising to 4.35% from 1 October 2026. Earnings of €352 a week or less are exempt; earnings from €352.01 to €424 receive a tapered credit.
What is my PRSI class?
Most private-sector employees in Ireland are Class A1. Classes B, C and D apply to certain public-sector workers; self-employed people are Class S. Your class appears on your payslip and can be checked in Revenue myAccount.
Does PRSI count toward my State Pension?
Yes. Each PRSI contribution week earns you credits toward the State Pension (Contributory). Most workers need 520 paid contributions over a working life to qualify for the maximum. Check your record on myWelfare.ie.
What is the tapered credit?
When you earn between €352.01 and €424 a week, your PRSI is reduced by a credit on a sliding scale. This stops a small pay rise from triggering a large jump in PRSI. The credit phases out completely above €424 a week.
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Open the toolPayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension or employment advice. Always verify your payslip, PAYE, USC, PRSI, tax credits, deductions and take-home pay with your employer's payroll department, Revenue, a qualified tax adviser, accountant or another appropriately qualified professional.