What are the changes to PRSI Rates in Ireland?

Starting 1st October 2024, Pay Related Social Insurance (PRSI) rates in Ireland will see increases across all classes as part of a government initiative to incrementally raise PRSI rates by 0.7 percentage points by 2028. These adjustments will affect both employees and employers, with the aim of strengthening the social insurance system.


Employee PRSI

  • Rate Increase: The employee PRSI rate will increase from 4% to 4.1%.
  • Class M and Class J Exemptions:
    • Class M: Employees under Class M (typically under-16s or certain pensioners) will remain exempt from PRSI contributions.
    • Class J: Employees under Class J (earning less than €38 per week or in certain other categories) will continue to have a 0% PRSI contribution.


Employer PRSI

  • Higher Rate Increase: The employer PRSI rate for higher-paid employees will rise from 11.05% to 11.15%.
  • Lower Rate Increase: For employees earning up to the national minimum wage, the lower employer PRSI rate will increase from 8.8% to 8.9%.
  • Threshold Adjustment: The weekly earnings threshold for the lower employer PRSI rate will increase from €441 to €496 per week, ensuring that employees working 39 hours at minimum wage remain eligible for the lower rate.


Self-Employed PRSI

  • Rate Increase: The PRSI rate for the self-employed will rise from 4% to 4.1%.
  • Minimum Contribution Increase: The minimum annual PRSI contribution for self-employed individuals will increase by €150, totaling €650 per year.


These changes are part of a multi-year plan to gradually raise PRSI rates, aiming for a total increase of 0.7 percentage points by 2028. The incremental increases are designed to support Ireland’s social welfare system, ensuring the sustainability of benefits such as unemployment benefits, pensions, and maternity benefits.

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