PRSI Rates Are Rising in October 2026: What Every Irish Employer Needs to Know

​From 1 October 2026, PRSI rates are changing again. If you run a business and pay staff in Ireland, this is a payroll change you need to plan for now.

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The increase is small for each employee. But it will add to employment costs across your team. It also comes after MyFutureFund pension auto-enrolment started in January 2026. For many employers, this means another reason to check budgets, payroll settings and employee communications.

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This guide explains the PRSI rates Ireland 2026 changes in plain English. It covers the new Class A rates, the higher weekly threshold and the practical steps to take before October.

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What is changing on 1st of October 2026?

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All PRSI rates will increase by 0.15 percentage points from 1 October 2026. This is not a one-off change. It is part of a phased annual increase announced in Budget 2024.

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The Government set out the roadmap to help fund social insurance and the MyFutureFund pension scheme. Further increases are planned for 2027 and 2028, so employers should keep future payroll costs in mind when planning ahead.

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PRSI, or Pay Related Social Insurance, is deducted through payroll. Employers also make PRSI contributions for employees. You can read Revenue's overview of PRSI contributions for employees and employers.

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For most employees, the relevant category is Class A. The key PRSI rates Ireland 2026 changes are set out below.

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Employee PRSI: Class A

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Until 30th September 2026: 4.20%

From 1st October 2026: 4.35%

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This means an employee paying the full Class A PRSI rate will have a little more PRSI taken from their gross pay. The exact effect depends on their earnings and PRSI class.

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Employer PRSI: Class A

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Employer PRSI has two main Class A rates. The rate depends on an employee's weekly earnings.

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For earnings above €552 per week

Until 30th September 2026: 11.25%

From 1st October 2026: 11.40%

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For earnings at or below €552 per week

Until 30th September 2026: 9.00%

From 1st October 2026: 9.15%

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The weekly earnings threshold is also changing. It rises from €527 to €552 on 1 October 2026. That threshold determines which employer Class A rate applies.

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Revenue's PRSI contribution rates guidance is the place to check the current official rate details and classes.

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What will the increase cost an employer?​

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The extra cost may look modest when viewed per person. However, it adds up as your headcount grows.

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Here is a simple example. Assume an employee earns €40,000 per year and is subject to the standard employer Class A PRSI rate.

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Annual pay: €40,000

Increase in employer PRSI rate: 0.15%

Extra employer PRSI: €40,000 × 0.15% = €60 per year

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So, from October, the business pays €60 more per year in employer PRSI for that employee because of this increase. This illustration looks only at the 0.15% rate rise. It does not include other payroll costs, pension contributions, overtime or pay rises.

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For a team of 10 employees earning €40,000 each, the same calculation would mean an additional €600 a year in employer PRSI.

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Your actual total will vary because employees have different pay levels, hours and PRSI classes.

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The threshold change can also affect the rate used for staff on lower weekly pay. Check each employee's earnings carefully rather than applying one figure across the whole payroll.

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Why this matters alongside MyFutureFund​​​

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MyFutureFund pension auto-enrolment has been in place since January 2026. It is designed to help eligible workers build retirement savings, with contributions from employees, employers and the State.

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The October PRSI change is separate from MyFutureFund. Still, both affect the overall cost of employing people. Employers should look at them together when reviewing cash flow and staff costs for the final quarter of 2026 and beyond.

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Do not assume every worker is treated in the same way. Eligibility, contribution levels and PRSI treatment can depend on pay and employment circumstances. Revenue's Employing people guidance is a useful starting point for payroll obligations. If you are unsure about a particular employee, get advice before your first October payroll is run.

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What you need to do before October​

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Use this checklist to get ready for the PRSI rates Ireland 2026 update.

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Check your payroll software

• Confirm that your payroll software provider will apply the new PRSI rates from 1 October 2026.

• Make sure the weekly Class A employer threshold changes from €527 to €552.

• If you run payroll in-house, update your settings and test the October pay run before it is due.

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Review employee records

• Check that each employee has the correct PRSI class recorded.

• Review weekly earnings for staff close to the €552 threshold.

• Make sure new starters, part-time staff and variable-hours employees are included in your checks.

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Update your budget

• Estimate the added employer PRSI cost for October to December 2026.

• Build the higher cost into your 2027 and 2028 forecasts too, as further increases are planned.

• Review the combined impact of PRSI, wages and MyFutureFund employer contributions.

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Communicate clearly with staff

• Let employees know that their PRSI deduction may change from October.

• Keep the message simple: this is a Government rate change, not a reduction in their agreed pay rate.

• Be ready to explain why their net pay may be slightly different.

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Keep good payroll records

• Save a note of the changes made to your payroll system.

• Check your first October payroll carefully before finalising it.

• Keep records that support the pay, deductions and employer contributions reported to Revenue.

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Avoid common payroll mistakes​

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The biggest risk is leaving the update until payday. An old software setting can lead to incorrect deductions or employer PRSI calculations. Fixing errors later takes time and can create confusion for staff.

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It is also easy to focus only on the standard 11.40% employer rate. Remember that the reduced Class A rate will be 9.15%, and the weekly threshold will be €552. Both figures need to be in the system from the same date.

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Finally, do not treat this as the last change. The PRSI rates Ireland 2026 increase is part of a wider roadmap, with more increases planned in 2027 and 2028. A regular payroll review can help your business stay compliant and avoid surprises.

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Need help with payroll?

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Getting payroll right protects your business and gives employees confidence that they are being paid correctly. Bond & Co. can help you manage payroll, keep up with Revenue requirements and prepare for changes such as the October PRSI increase.

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Get in touch today: