PRSI (Pay Related Social Insurance)
aka PRSI
Ireland's social insurance contribution deducted at source by payroll. Most employees are on Class A1, with employee PRSI at 4.1% and employer PRSI at 8.9% (lower rate) or 11.15% (higher rate) from October 2024 rates.
Last reviewed April 2026
Definition
PRSI (Pay Related Social Insurance) is the contribution that funds Ireland's Social Insurance Fund, administered by the Department of Social Protection. PRSI is deducted at source by payroll software alongside income tax and USC and remitted to Revenue monthly under PAYE Modernisation. Employees are assigned a PRSI class based on their employment type, with Class A the default for most private-sector employees. Contribution rates are set annually in the Budget and apply to gross weekly earnings. From 1 October 2024, the employee Class A rate rose to 4.1%, with employer rates of 8.9% (for weekly earnings up to EUR 496) and 11.15% (above EUR 496). Separate classes cover proprietary directors (Class S, self-employed), public servants (Classes B, C, D), and reduced-contribution categories. PRSI contributions build up the weekly reckonable contributions that determine entitlement to the contributory State pension, Jobseeker's Benefit, Maternity Benefit and other social welfare payments.
Why it matters for software choice
Misclassifying an employee's PRSI class is one of the most common Revenue payroll audit findings. Payroll software that maintains an up-to-date PRSI class matrix, automatically applies the correct rate bands from each Budget, and calculates the subclass for borderline earnings (Class AX vs AL) removes the largest source of payroll error.
Authority sources
- Revenue: PRSI (www.revenue.ie)
- gov.ie: PRSI classes (www.gov.ie)
Software categories this affects
Vendors covered by this term
BrightPay
Award-winning Irish payroll with full PAYE Modernisation and Revenue integration
Collsoft Payroll
Irish payroll built for construction and mid-size businesses with RCT and CSO reporting
Thesaurus Payroll Manager
Ireland's most affordable PAYE-compliant payroll at just EUR 175 per year
Related terms
PAYE Modernisation
Ireland's real-time payroll reporting regime, introduced by Revenue on 1 January 2019. Every payroll run must submit data to Revenue on or before the date employees are paid.
Universal Social Charge
Irish payroll tax on gross income deducted at source by employers via PAYE and reported in real time under PAYE Modernisation. Bands, rates and exemption thresholds are set in the annual Finance Act.
Employment Detail Summary
Annual statement employees download from Revenue MyAccount showing total pay, tax, USC and PRSI for the year. Replaced the P60 from 2019 onward under PAYE Modernisation.