Upcoming PRSI Rate Changes – Effective 1st October 2025


Increases to Pay Related Social Insurance (PRSI) contribution rates will come into effect from 1st October 2025. Employer and employee contribution rates will increase by 0.10%. These changes were announced in last year’s Budget and are part of a series of increases to PRSI rates which will apply over the next three years. There will be further increases of 0.15% in both 2026 and 2027, followed by an increase of 0.2% in 2028. These changes will result in reductions in employee’s net take home pay and increased costs for employers.

Key Changes from 1st October 2025:

Employee PRSI (Class A) contribution rates will increase from 4.10% to 4.20%. Similar increases will apply to other PRSI classes (B,C,D,H etc).

Employer Class A PRSI rates will increase:

  • From 11.15% to 11.25% for employees earning over €527/week
  • From 8.9% to 9% for employees earning less than €528/week

Self-employed PRSI (Class S) will also rise from 4.10% to 4.20%. For those paying Class S PRSI through the self-assessment system, a blended rate of 4.125% will apply on their self-employed 2025 annual income due to the change of rate during the year.


What Employers Should Do to Prepare:

  • Review Payroll Systems: Ensure payroll software is updated to reflect the new rates from 1 October.
  • Communicate with Staff: Inform employees about the changes to avoid confusion in net pay.
  • Budget for Increased Costs: Factor the higher employer contributions into financial planning for Q4 and beyond.
  • Consult Your Payroll Provider: Confirm that automated calculations will reflect the new thresholds and rates.


Get in touch with our Employment Tax Team today

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