True Employer Cost Calculator for Ireland
Enter a gross salary and see the full employer cost: employer PRSI plus Auto-Enrolment (My Future Fund) contribution, broken down per component with the rate cited. Employer-side only - employee net pay is a separate calculation.
Rates verified 2026-07-14. Indicative planning tool, not payroll or financial advice.
Not included: holiday and sick-leave accrual costs, occupational pension contributions above Auto-Enrolment, and Sectoral Employment Order rates in construction and electrical.
Enter the employee's gross annual salary. Employer PRSI and Auto-Enrolment contributions are in addition to this figure.
What this calculator computes
Every Irish employer on a PAYE payroll carries two costs on top of gross salary that do not appear on the employee's payslip: employer PRSI and, from January 2026, the Auto-Enrolment employer contribution under the My Future Fund scheme. This tool puts a euro figure on both, so you can budget honestly before you hire.
The calculator does not model employee net take-home pay. If you need the employee-side income tax, USC and employee PRSI figures, use the contractor take-home calculator as a reference or consult your payroll software.
Employer PRSI - the two Class A rates
Class A covers most employees in ordinary employment. The rate depends on how much the employee earns in each pay period:
- Standard rate applies when weekly earnings are EUR 552 or more: 11.25% until 30 September 2026, then 11.4% from 1 October 2026. At the current rate, an employee on EUR 40,000 costs the employer EUR 4,500 per year in PRSI alone.
- Reduced rate applies when weekly earnings are below EUR 552 (annual equivalent: below EUR 28,704): 9% until 30 September 2026, then 9.15%. Part-time, casual, and lower-paid employees fall into this band, including anyone on the national minimum wage working a standard 39-hour week.
Source: Department of Social Protection - PRSI Class A rates . Rates are assessed per pay period, not on an annual figure. Employer PRSI is on top of gross pay - it does not reduce the employee's take-home.
Auto-Enrolment employer contribution
Auto-Enrolment (My Future Fund) launched on 1 January 2026 and is administered by NAERSA. Employers must contribute alongside each enrolled employee, on a phase-in schedule:
- 2026 to 2028: 1.5% of qualifying earnings
- 2029 to 2031: 3%
- 2032 to 2034: 4.5%
- From 2035: 6%
Contributions are calculated on gross earnings up to EUR 80,000 per employee per year. Employees earning less than EUR 20,000 per year are outside the scheme and carry no employer contribution. For a full 10-year cost projection across your workforce, use the Auto-Enrolment cost calculator.
Source: My Future Fund - employer information (NAERSA) .
What this calculator does not include
The following employer costs are real but outside this calculator's scope:
- Holiday pay accrual - typically 8% of gross for workers on variable hours.
- Statutory sick pay - 5 days from 2024 under the Sick Leave Act 2022, rising to 10 days by 2026.
- Occupational pension contributions beyond the Auto-Enrolment minimum.
- Sectoral Employment Order (SEO) rates in construction, electrical contracting, and other regulated sectors.
Your payroll software should calculate PRSI and Auto-Enrolment contributions automatically on each pay run; the figures above are for annual planning and budgeting.
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What to look for
- Every PRSI rate rises 0.15 points on 1 October 2026 - the calculator applies the rate in force.
- Budget for the Auto-Enrolment rate rising from 1.5% to 6% by 2035 - it quadruples.
- Employer PRSI rate class switches at EUR 552/week - check where your part-time staff fall.
- Employees earning less than EUR 20,000/year are outside Auto-Enrolment.
- Confirm your payroll software is AE-ready before your next pay run.
Common mistakes to avoid
- Forgetting to add employer PRSI when comparing salary offers to contractor day rates.
- Budgeting only for the 1.5% year-one AE rate and being caught out by the step-ups.
- Assuming the EUR 80,000 AE cap applies to all employees - it only matters above that threshold.
- Including the State top-up (paid into the employee's pot) as part of your employer cost.
Frequently asked questions
How much does an employee on EUR 40,000 actually cost an Irish employer?
On a EUR 40,000 gross salary, the employee is above the weekly threshold, so the standard employer PRSI rate applies: 11.25% until 30 September 2026 (EUR 4,500), rising to 11.4% from 1 October 2026 (EUR 4,560). Add the 1.5% Auto-Enrolment employer contribution on the full EUR 40,000 (EUR 600) and the total employer on-cost is EUR 5,100 today, or EUR 5,160 once the October rate lands. Enter your own salary above for an exact figure on the rates in force.
What is the employer PRSI rate in Ireland in 2026?
There are two Class A employer PRSI rates, and both step up mid-year. Until 30 September 2026 the standard rate is 11.25% and the reduced rate is 9%. From 1 October 2026 every PRSI rate rises by 0.15 points, taking them to 11.4% and 9.15%. The standard rate applies when the employee earns EUR 552 or more per week; below that, the reduced rate applies. That threshold rose from EUR 527 to EUR 552 on 1 January 2026 so that an employee on the national minimum wage working a 39-hour week stays on the reduced rate. The rate is determined per pay period, not on the annual total. Source: Department of Social Protection.
How much does Auto-Enrolment add to Irish employer costs in 2026?
In the first phase (2026 to 2028) employers contribute 1.5% of each enrolled employee's gross earnings up to an EUR 80,000 cap. For an employee on EUR 40,000 that is EUR 600 per year, or EUR 50 per month. The rate phases up: 3% from 2029, 4.5% from 2032, and 6% from 2035. Employees earning less than EUR 20,000 per year are outside the Auto-Enrolment earnings band and carry no employer contribution.
Does employer PRSI apply to bonuses and overtime?
Yes. Employer PRSI applies to all PAYE-subject pay including basic salary, bonus, overtime, commission and most allowances. The weekly earnings figure used to determine the PRSI rate class includes all pay in that pay period. Revenue's PAYE Modernisation Payroll Submission Request (PSR) captures the full pay figure; your payroll software applies the correct rate automatically.
Related payroll tools and guides
- Auto-Enrolment cost calculator - 10-year employer cost projection as the rate phases up from 1.5% to 6%, across your full in-scope workforce.
- Payroll software for Ireland - compare Auto-Enrolment-ready Irish payroll systems that handle PRSI, AE contributions and PAYE Modernisation automatically.
- Contractor take-home calculator - employee-side income tax, USC and PRSI for IT contractors comparing umbrella company versus limited company structures.
Results are indicative only and based on the information provided. Data may not reflect current vendor offerings and is subject to change. Always verify details directly with vendors before making purchasing decisions.