Quick answer
- Class A employee PRSI is nil at weekly earnings up to €352 under the standard 2026 table.
- Between €352.01 and €424, a tapered credit reduces the calculated employee contribution.
- The credit is part of PRSI; it is not a PAYE tax credit and does not reduce USC.
- Nil employee PRSI does not necessarily mean nil employer PRSI or no insurable contribution.
PRSI Calculator
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How the employee threshold and credit fit together
The full rate table, both 2026 date periods and worked examples remain on the PRSI Calculator. This page explains only the threshold behaviour.
How the tapered PRSI credit is calculated
The maximum weekly credit is €12. It reduces by one-sixth of weekly earnings above €352.01 until it reaches zero at the top of the credit range.
Payroll rounding can create small cent differences. The credit cannot reduce the employee contribution below zero and does not transfer to PAYE or USC.
Why a small pay rise can cause a visible PRSI change
Within the credit range, two things happen together: the employee contribution increases with pay, while the credit becomes smaller. The net PRSI increase can therefore be more noticeable than simply multiplying the extra pay by the headline employee percentage.
That does not mean the whole pay rise is lost. Compare the change in gross pay, employee PRSI, PAYE, USC and net pay rather than isolating the PRSI line.
Employee PRSI can be nil while employer PRSI remains due
The employee and employer shares are separate calculations. An employee in the A0 band can have no employee PRSI deduction while the employer still pays its share on reckonable pay. The pay period can still be recorded as an insurable contribution week.
This distinction matters when reading a payslip or budgeting staff cost. “No employee PRSI” is not the same as “no PRSI activity”.
Pay frequency and irregular earnings
PRSI thresholds are expressed weekly. Payroll reports contribution weeks for fortnightly, four-weekly and monthly pay periods, so an annual salary divided by 52 is a useful estimate but not always an exact payroll reconstruction.
Bonuses, once-off pay, unpaid leave and variable hours can change the subclass for a period. Review the actual reckonable pay and PRSI weeks before concluding that the threshold was applied incorrectly.
Frequently asked questions
What is the PRSI credit?
It is a tapered weekly Class A employee credit that reduces the contribution in the €352.01 to €424 range.
Is the PRSI credit a tax credit?
No. It affects PRSI only and does not reduce PAYE Income Tax or USC.
What is the employee PRSI threshold?
Under the standard 2026 Class A table, employee PRSI is nil up to €352 weekly earnings.
Why did PRSI rise sharply after a small pay increase?
Inside the credit range, the contribution rises while the weekly credit tapers down.
Does nil employee PRSI mean no employer PRSI?
No. The employer share can remain payable even where the employee share is nil.
Does an A0 week count as a contribution?
It can be reported as an insurable Class A contribution even though the employee share is nil.
Are monthly thresholds calculated as annual salary divided by 12?
Payroll uses the period’s reckonable pay and contribution weeks. A simple annual conversion may differ around thresholds.
Where can I calculate the credit?
Use the PRSI Calculator with weekly pay; it applies the current credit and shows the breakdown.
Sources & references
- Department of Social Protection: PRSI Class A rates
- Department of Social Protection: PRSI Contribution Rates and User Guide (SW14)
- Department of Social Protection: PRSI Employer Guide
- Revenue: Pay Related Social Insurance (PRSI)
- Department of Social Protection: PRSI overview
- Citizens Information: Paying social insurance
Related calculators
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