Ireland Employer PRSI Calculator 2026
Calculate your employer PRSI liability under 2026 Budget rates — 11.05% standard or 8.8% reduced (earnings at or below €441/week). Enter employee salary and number of staff to see total PRSI cost, employee PRSI, and full employment cost. Based on Revenue.ie employer PRSI guidance.
What Is Employer PRSI in Ireland?
Employer PRSI (Pay Related Social Insurance) is a statutory contribution paid by employers to the Social Insurance Fund on behalf of every eligible employee. For Class A employees — covering the vast majority of private-sector and most public-sector workers — the 2026 employer PRSI rate is 11.05% of gross earnings. A reduced rate of 8.8% applies where the employee's weekly gross earnings are €441 or less (€22,932/year). Employer PRSI is paid on top of the employee's gross salary; it is not deducted from wages. According to Revenue.ie, Budget 2026 increased the employer rate by 0.1 percentage points, effective October 2024. The National Training Fund (NTF) Levy of 1% is included within the 11.05% rate — employers do not pay it separately. Last updated: May 2026.
2026 Employer PRSI Rates at a Glance
The table below summarises the 2026 employer PRSI rates for the two most common employment classes.
| PRSI Class | Who it covers | Weekly earnings | Employer rate |
|---|---|---|---|
| Class A (reduced) | Most private/public employees | ≤ €441 / week | 8.8% |
| Class A (standard) | Most private/public employees | > €441 / week | 11.05% |
| Class S | Self-employed / proprietary directors | All income | 0% (no employer contribution) |
The employee PRSI rate for Class A is 4% on earnings above the €352/week PRSI-free threshold. Class S employees pay 4% themselves, with a minimum of €500 per year, and there is no employer-side contribution. Source: Revenue.ie — PRSI for Employers, rates effective 2026.
How to Calculate Employer PRSI
Calculating employer PRSI for Class A is straightforward. First, determine the employee's annualised weekly earnings. If weekly earnings are €441 or below, multiply gross annual salary by 8.8%. If weekly earnings exceed €441, multiply by 11.05%. The result is your annual employer PRSI liability for that employee. For example: an employee earning €50,000/year has weekly earnings of €961.54 (well above €441), so employer PRSI = €50,000 × 11.05% = €5,525/year or €460.42/month. For a lower-paid employee on €20,000/year (€384.62/week — above €352 employee threshold but below the €441 reduced-rate cut-off), the employer PRSI = €20,000 × 8.8% = €1,760/year. Total employment cost is gross salary plus employer PRSI, plus any employer pension contributions.
Class A vs Class S — What Employers Need to Know
For Class A employees, the employer must pay PRSI through the PAYE system every time payroll is run. Class A PRSI builds entitlement to the full range of social insurance benefits including the contributory State Pension, Jobseeker's Benefit, Illness Benefit, and Maternity Benefit. For proprietary directors and self-employed contractors classified as Class S, there is no employer PRSI contribution — the individual pays 4% themselves via their annual tax return. Misclassifying an employee as self-employed (a "bogus self-employment" arrangement) is a compliance risk; Revenue and the Workplace Relations Commission both investigate such cases. If in doubt, use the Revenue employment status determination tool before classifying a worker.
Disclaimer: Rates change annually — always verify at Revenue.ie before processing payroll.
Frequently Asked Questions
What is the employer PRSI rate in Ireland for 2026?
For Class A employees (most private-sector workers), the standard employer PRSI rate is 11.05% of gross earnings from the first euro. A reduced rate of 8.8% applies where the employee\u2019s weekly earnings are \u20ac441 or less (\u20ac22,932 per year). Budget 2026 increased the rate by 0.1 percentage points effective October 2024. Rates are set by Revenue and published at revenue.ie.
Is there a reduced employer PRSI rate in Ireland?
Yes. Employer PRSI for Class A employees falls to 8.8% (from 11.05%) when the employee\u2019s weekly gross earnings are \u20ac441 or less, equivalent to \u20ac22,932 per year or \u20ac1,911 per month. This reduced rate was designed to lower the cost of employing lower-paid workers. Once weekly earnings exceed \u20ac441, the full 11.05% applies to the entire gross salary \u2014 not just the excess.
Is employer PRSI on top of the gross salary?
Yes. Employer PRSI is an additional cost paid by the employer on top of the employee\u2019s gross salary and is never deducted from the employee\u2019s wages. A \u20ac50,000/year employee costs \u20ac50,000 gross plus \u20ac5,525 employer PRSI (11.05%), totalling \u20ac55,525 in employment cost before pension contributions.
Does employer PRSI include the National Training Fund Levy?
Yes. The National Training Fund (NTF) Levy of 1% is embedded within the 11.05% employer PRSI rate. Employers do not pay the NTF levy separately \u2014 it is collected as part of the PRSI payment through the PAYE system.
What class of PRSI do most employees pay in Ireland?
The vast majority of private-sector employees pay Class A PRSI. The standard sub-class is A1 for weekly earnings above \u20ac352 where the full 4% employee rate applies. Class S applies to self-employed individuals and proprietary directors who pay 4% via self-assessment.
How do I calculate the total cost of employing someone in Ireland?
Total employment cost = Gross Salary + Employer PRSI + Employer Pension (if any). For Class A employees earning above \u20ac441/week, add 11.05% of gross salary. For those earning at or below \u20ac441/week, add 8.8%. Example: \u20ac40,000 \u00d7 11.05% = \u20ac4,420 employer PRSI \u2192 total cost \u20ac44,420 plus pension.