At RizFin, we know that tax and payroll updates can feel overwhelming — especially when it comes to PRSI Ireland 2025. With new rates taking effect in October, now is the time to get clear on what PRSI is, who pays it, and how the changes will affect you.
This guide breaks it all down in plain English so you can plan ahead with confidence — whether you’re running payroll, managing your own business, or simply trying to make sense of your payslip.
What is PRSI?
PRSI (Pay-Related Social Insurance) is a contribution made by employees, employers and the self-employed into Ireland’s Social Insurance Fund.
It helps fund vital social welfare supports, including:
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The State Pension (Contributory)
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Illness, maternity and paternity benefits
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Jobseeker’s payments
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Dental, optical and hearing treatment benefits
For PRSI Ireland 2025, think of it not as a tax but as a safety net. Your contributions today protect your entitlements tomorrow.
📎 Learn more: PRSI and social insurance in Ireland (Citizens Information).
Who Pays PRSI?
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Employees (PAYE workers): PRSI is deducted from your wages automatically. You and your employer both contribute.
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Self-Employed (Class S): You pay PRSI annually through your tax return. A minimum contribution applies.
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Employers: You contribute PRSI on top of wages as part of payroll.
These rules don’t change in PRSI Ireland 2025, but the contribution rates will.
When Do You Pay PRSI?
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Employees: Every payroll run (weekly, fortnightly, or monthly).
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Employers: Submitted to Revenue with each payroll.
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Self-Employed: Annually with your income tax return (Form 11) — due by 31 October (mid-November if filing online via ROS).
The process stays the same in PRSI Ireland 2025, but the amounts deducted will increase slightly.
📎 Learn more: PRSI for self-assessment and the self-employed (Revenue.ie).
PRSI Rates in 2025
Here’s what to expect this year under PRSI Ireland 2025:
Employees (Class A – PAYE)
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Until 30 Sept 2025
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Up to €352: Employee 0%, Employer 8.9%
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€352.01–€424: Employee 4.1%, Employer 8.9%
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€424.01–€527: Employee 4.1%, Employer 8.9%
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Over €527: Employee 4.1%, Employer 11.15%
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From 1 Oct 2025
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Up to €352: Employee 0%, Employer 9%
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€352.01–€424: Employee 4.2%, Employer 9%
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€424.01–€527: Employee 4.2%, Employer 9%
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Over €527: Employee 4.2%, Employer 11.25%
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Self-Employed (Class S)
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Until 30 Sept 2025: 4.1% of income, or €650 minimum annually.
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From 1 Oct 2025: 4.2% of income, or €650 minimum annually.
💡 If you earn under €5,000 annually, PRSI isn’t compulsory — but voluntary contributions can protect your pension record.
Employers
From October, employer PRSI rates rise slightly:
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Lower band: 8.9% → 9%
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Higher band: 11.15% → 11.25%
📎 Learn more: Official PRSI Class A rates 2025 (Gov.ie).
Why Are PRSI Rates Changing?
Ireland’s population is ageing, and pension costs are rising. To keep the Social Insurance Fund sustainable, the government is phasing in increases over five years (2024–2028).
The change in PRSI Ireland 2025 is just 0.1%, but more gradual rises are planned.
Worked Examples
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Employee earning €500 per week
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Before Oct: Employee PRSI €20.50, Employer PRSI €44.50 (Total €65)
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After Oct: Employee PRSI €21.00, Employer PRSI €45.00 (Total €66)
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Self-Employed earning €30,000 annually
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Before Oct: €1,230 PRSI
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After Oct: €1,260 PRSI
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These examples highlight how PRSI Ireland 2025 changes may seem small, but they add up across annual payrolls and tax returns.
Key Takeaways for PRSI Ireland 2025
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Employees: A slight increase in PRSI deductions from October.
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Self-Employed: Rate rises to 4.2% — remember the €650 minimum.
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Employers: Payroll costs rise — update systems and forecasts.
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Everyone: PRSI is more than a deduction; it secures your benefits and pension entitlements.
FAQs
Do I pay PRSI if I earn under €5,000 (self-employed)?
No, but voluntary contributions are strongly recommended.
Can I claim back PRSI if I overpay?
Yes — overpayments can be reclaimed from Revenue.
What benefits does PRSI cover?
Pensions, illness and maternity supports, jobseeker’s payments, and treatment benefits.
Will PRSI keep rising after 2025?
Yes — gradual increases are planned until 2028, starting with the rise in PRSI Ireland 2025.
How RizFin Can Help
At RizFin, we support employees, self-employed professionals and employers in understanding PRSI Ireland 2025 and planning for the changes ahead.
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Employers: We’ll prepare your payroll for the October update.
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Employees: We’ll explain how deductions affect your take-home pay.
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Self-Employed: We’ll include PRSI in your tax and cashflow planning so there are no surprises.
📞 Get in touch with RizFin today — we’ll help you navigate PRSI Ireland 2025 with clarity and confidence.
