Pay related social insurance (PRSI) changes from 1 October 2025

Sage Payroll v28.1 includes these PRSI changes.

It was announced in Budget 2025 that all PRSI contribution rates will increase by 0.1% from 1 October 2025.

Below is an overview of the changes. You can find further information including bands and subclasses from GOV.IE

Employee PRSI

Class A	Employee rate increases to 4.2%
Class B	Lower rate increases to 1.1% Higher rate increases to 4.2%
Class C	Lower rate increases to 1.1% Higher rate increases to 4.2%
Class D	Lower rate increases to 1.1% Higher rate increases to 4.2%
Class E	Employee rate increases to 3.53%
Class H	Employee rate increases to 4.1%
Class K	Employee rate increases to 4.2%

 NOTE: There is no change to the employee PRSI Credit. 

Self-employed payments

Class S	Self-employed rate increases to 4.2%
Class P	Share fisherperson rate increases to 4.2%

Employer PRSI

Class A	Lower rate increases to 9% Higher rate increases to 11.25%
Community Employment Participants	Rate increases to 0.7%
Class B	Rate increases to 2.21%
Class C	Rate increases to 2.05%
Class D	Rate increases to 2.55%
Class E	Rate increases to 7.07%
Class H	Rate increases to 10.55%
Class J	Rate increases to 0.7%

In addition to the increase in rates, the PRSI subclass AL weekly earnings threshold remains at €527.

Update to v28.1 of Sage Payroll, to keep your software current and compliant with the latest legislation.