PRSI Rates Increase from 1 October 2026

EMPLOYERS, be aware.

PRSI rates will increase in Ireland from 1^st October 2026 affecting employees, employers and the self-employed. The changes apply to Class A employee and employer PRSI rates, as well as Class S PRSI for the self-employed.

Employers should update their payroll systems and account for the increased PRSI costs. Self-employed individuals should consider the impact on their 2026 PRSI liability.

A. From 1 October 2026, employee PRSI increases to 4.35%. Employer PRSI increases to 11.40%, or 9.15% for weekly earnings of €552 or less.

B. Employees earning €352 or less per week are exempt from employee PRSI. A tapered PRSI credit of up to €12 per week applies to weekly earnings between €352.01 and €424.

C. Individuals with total income of €13,000 or less are exempt from USC.

D. Reduced USC rates apply to eligible individuals aged 70+ and/or full Medical Card holders with annual income of €60,000 or less: 0.5% on the first €12,012 and 2% on the balance. For full Medical Card holders, these rates apply until the end of 2027.

The October 2026 PRSI increase is relatively small, but it is another change that employers and employees need to account for in their payroll planning. For employees, it may mean a slightly higher PRSI deduction. For employers, it means a higher overall cost of employment. The best approach is to prepare for the new rates, keep payroll systems up to date and consider the full employment cost when making decisions about pay, hiring and business growth.

If you have questions about how these changes may affect you or your business, get in touch with your accountant or tax advisor.

MF  29^th Sept 2026.