PRSI Explained 2026: Rates, Classes and Benefits
PRSI (Pay Related Social Insurance) is charged at 4.1% on weekly earnings above €352 for Class A employees from January to September 2026, rising to 4.35% from October 2026. It builds entitlement to Jobseeker's Benefit, the State Pension (Contributory), Maternity Benefit and more.
What PRSI is and what it funds
PRSI is Ireland's system of social insurance. Contributions go into the Social Insurance Fund (SIF), which pays out contributory benefits. These benefits are not means-tested: entitlement is based on your contribution record, not your income or savings.
Class A contributions count towards:
- State Pension (Contributory)
- Jobseeker's Benefit
- Illness Benefit
- Maternity Benefit
- Paternity Benefit
- Adoptive Benefit
- Parent's Benefit
- Bereavement Grant (where applicable)
Class A rates for 2026
Class A is the standard class for employees earning over €352 per week. The 2026 rates are:
| Period | Weekly earnings | Rate |
|---|---|---|
| 1 Jan to 30 Sep 2026 | Up to €352/week | 0% (exempt) |
| 1 Jan to 30 Sep 2026 | Above €352/week | 4.1% |
| 1 Oct 2026 onwards | Up to €352/week | 0% (exempt) |
| 1 Oct 2026 onwards | Above €352/week | 4.35% |
There is no PRSI charge at all on the first €352 of weekly earnings (€18,304 annually). A tapered PRSI credit applies for earnings just above the threshold, which cushions the transition.
The employer PRSI rate for Class A employees is 11.15% on gross earnings above the secondary threshold. This cost does not appear on the employee's payslip but forms part of the total employment cost.
Budget 2026 rate change
Budget 2026 increased the employee PRSI rate from 4.1% to 4.35% with effect from 1 October 2026. This is part of a phased increase aimed at securing the long-term funding of the Social Insurance Fund. For an employee earning €50,000 annually, the increase amounts to roughly €79 extra per year from October.
How PRSI differs from USC
Both USC and PRSI appear as deductions on an Irish payslip, but they work very differently:
| Feature | PRSI | USC |
|---|---|---|
| Nature | Social insurance contribution | Tax |
| Benefit entitlement | Yes (State Pension, illness, maternity etc.) | No |
| Weekly exemption | €352/week | None (income under €13,000 fully exempt) |
| Employer contribution | Yes (11.15%) | No |
Social Insurance Fund
Both employee and employer PRSI contributions are paid into the Social Insurance Fund (SIF), which is administered by the Department of Social Protection. The SIF funds all the contributory benefits listed above. A strong contribution record over your working life is the basis for a full State Pension (Contributory) in retirement.
See the exact PRSI deduction for any salary with our Ireland Salary Calculator.
Frequently asked questions
What is the PRSI rate for employees in 2026?
Class A employees pay 4.1% on weekly earnings above €352 from 1 January to 30 September 2026, and 4.35% from 1 October 2026. There is no PRSI charge on the first €352 of weekly earnings.
What benefits does PRSI entitle you to?
PRSI contributions build entitlement to Jobseeker's Benefit, Illness Benefit, Maternity Benefit, Paternity Benefit, Adoptive Benefit, Parent's Benefit, and the State Pension (Contributory).
How is PRSI different from USC?
PRSI is a social insurance contribution that builds entitlement to specific benefits like the State Pension. USC (Universal Social Charge) is purely a tax with no associated benefit entitlement. Both are deducted from your payslip.
Sources: Revenue.ie, Department of Social Protection PRSI rates 2026. Last updated 2026-11-04.