Employer PRSI Guide Reviewed 26 July 2026

Employer PRSI Ireland 2026: Cost and Calculation

Understand employer PRSI in Ireland, how it differs from the employee deduction, what forms reckonable pay and how to estimate total employment cost.

Quick answer

  • Employer PRSI is paid by the employer on top of salary; it is not taken from the employee’s net pay.
  • The employer contribution depends on the employee’s PRSI class, reckonable pay and the rate in force for the pay date.
  • For standard Class A in 2026, the lower and higher employer percentages both increase from 1 October.
  • The PRSI Calculator shows employer PRSI separately and links it to the canonical Class A table.
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On this page
  1. Employer PRSI versus employee PRSI
  2. How to estimate total employment cost
  3. What can form reckonable pay for employer PRSI?
  4. 2026 rate timing without duplicating the full table
  5. Employer payroll responsibilities
  6. Once-off payments, multiple jobs and special cases

Employer PRSI versus employee PRSI

Area Employee share Employer share
Who bears the amount? Employee, through a payslip deduction Employer, as an additional payroll cost
Does it reduce take-home pay? Yes No
What determines it? Class, subclass, reckonable pay and date Class, reckonable pay and date
Where is it reported? Payroll submission and payslip Payroll submission; may be shown as ER information

How to estimate total employment cost

Core employment cost = gross salary + employer PRSI + employer-funded benefits and pension + other employment costs

The formula is useful for hiring budgets, but employer PRSI should be calculated pay period by pay period where earnings vary or cross the employer band. The PRSI Calculator can estimate both the employee and employer share from the same gross-pay input.

Do not subtract employer PRSI from the advertised salary or the employee’s net pay. It is an additional business cost.

What can form reckonable pay for employer PRSI?

DSP guidance describes reckonable earnings broadly as gross money pay plus relevant notional pay or benefits in kind. Salary, wages, overtime, bonuses, commissions, arrears and taxable employer-provided benefits can therefore affect the PRSI base.

Payment type Typical check
Regular salary or wages Include the period’s gross reckonable amount
Overtime, commission or bonus Can change the contribution and subclass for that period
Taxable benefit in kind Relevant notional pay can enter reckonable earnings
Employer pension contribution Check the specific pension and PRSI treatment rather than treating it as salary
Expense reimbursement Genuine vouched business expenses differ from taxable allowances

2026 rate timing without duplicating the full table

For standard Class A employment, 2026 has one rate period to 30 September and another from 1 October. The lower employer rate increases to 9.15% from 1 October and the higher employer rate increases to 11.40%. Which rate applies depends on the weekly-pay band and the exact pay date.

Use the PRSI Calculator for the complete pay bands, both date periods and worked examples. Keeping the full table in one location prevents rate conflicts across the site.

Employer payroll responsibilities

  1. Use the correct employee class and subclass.
  2. Calculate both employee and employer shares on reckonable pay.
  3. Report gross PRSI pay, each share, the class and contribution weeks in the payroll submission.
  4. Keep Income Tax, USC and PRSI records separately.
  5. Correct payroll submission errors promptly because they can affect an employee’s benefit record.

Revenue states that weekly payroll reports one contribution week, fortnightly payroll normally reports two, and monthly payroll reports the weeks applicable to that period rather than a cumulative annual number.

Once-off payments, multiple jobs and special cases

A bonus or once-off payslip can combine with regular pay for PRSI in the same pay period and push the employee into another subclass or employer band. Each employer normally calculates PRSI on the pay from that employment, while the correct class can depend on the wider nature of the employment.

Community Employment, modified-rate public service, very low-pay, subsidiary employment, directors and age 66–70 cases require the applicable official class instructions rather than a standard Class A assumption.

Frequently asked questions

What is employer PRSI?

It is the employer’s social-insurance contribution on employee reckonable pay, paid in addition to gross salary.

Is employer PRSI deducted from wages?

No. The employee share reduces take-home pay; employer PRSI is a separate employer cost.

How much employer PRSI does an employer pay?

It depends on class, reckonable weekly pay and the date. Use the calculator for the full 2026 Class A bands and rates.

Does employer PRSI apply when employee PRSI is nil?

It can. In the lower Class A band, the employee share may be nil while the employer share remains due.

Is employer PRSI charged on bonuses or overtime?

These payments generally enter reckonable pay and can change the pay-period contribution.

Is employer PRSI charged on benefits in kind?

Relevant notional pay or taxable benefits can be included in reckonable earnings.

Does employer PRSI appear on a payslip?

Some payslips show an ER information line, but it is not an employee deduction.

How do I calculate salary plus employer PRSI?

Add the estimated employer contribution to gross salary, then add other employer-funded benefits and employment costs.

Sources & references

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