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EMPLOYER COST / 2026 / IRELAND

Ireland employer cost calculator

Work out what an employee costs an Irish employer in 2026: gross salary plus employer PRSI at 9% to 11.40%, employer pension contributions and other costs.

Last verified: Methodology

Your details

01Employee

No PRSI is charged on employer pension contributions.

Health insurance, equipment, training and so on.

Total cost to employer

€58,144

per year for €50,000 in pay

Employer PRSI
€5,643.69
Employer pension
€2,500.00
Cost per month
€4,845.31
Cost multiplier (× salary)
1.16
  • Employer PRSI uses 2026 tax year (39 weeks at the January rates, 13 weeks at the October rates). Until 30 September 2026 it is 9% when weekly pay is €552 or less and 11.25% of all pay above that; from 1 October 9.15% and 11.40%. Both include the 1% National Training Fund levy.
  • Employer PRSI is charged on gross pay including the employee's own pension contributions, but not on the employer's pension contribution.

Total cost to employer: €58,144 per year for €50,000 in pay

What this employee costs
LineYearMonth
Gross salary€50,000.00€4,166.67
Employer PRSI€5,643.69€470.31
Employer pension€2,500.00€208.33
Total cost€58,143.69€4,845.31
Where the money goes
86%TAKE-HOME
  • Salary€50,00086%
  • Employer PRSI€5,64410%
  • Employer pension€2,5004%

PRSI week by week

Weekly pay €961.54. PRSI is worked out on weekly pay.

RatesClassEmployee / weekPRSI creditEmployer / weekWeeks
1 January – 30 September 2026A1€40.38€0.00€108.1739
1 October – 31 December 2026A1€41.83€0.00€109.6213

€58,144

per year for €50,000 in pay

How it's calculated

Beyond the salary itself, the main statutory cost of employing someone in Ireland is employer PRSI. For a Class A employee it is worked out on each week's pay:Department of Social Protection

Weekly payUntil 30 September 2026From 1 October 2026
€38 to €5529%9.15%
Over €55211.25%11.4%

The rate applies to all of the week's pay, with no ceiling, and includes the 1% National Training Fund levy. Employer PRSI is due even when the employee earns too little to pay PRSI themselves.

Employer pension contributions are not subject to PRSI, but the employee's own pension contributions are included in pay for employer PRSI in the private sector.Department of Social Protection

The formula

  • Weekly pay = salary ÷ 52.
  • Employer PRSI = 39 weeks × rate (to 30 September) × weekly pay + 13 weeks × rate (from 1 October) × weekly pay, each week rounded to the cent.
  • Total cost = salary + employer PRSI + employer pension contribution + other costs.

Worked example

€50,000 employee with a 5% employer pensionEMPLOYER COST / 2026 / IRELAND
LineYearMonth
Gross salary€50,000.00€4,166.67
Employer PRSI€5,643.69€470.31
Employer pension€2,500.00€208.33
Total cost€58,143.69€4,845.31

A €28,000 employee, paid under the weekly threshold, attracts employer PRSI of €2,530.45 for the year, while a €29,000 employee, paid just over it, attracts €3,273.40, because the higher rate then applies to all of their pay.

Assumptions and limitations

  • Class A (or J), private sector. Public sector classes and the Community Employment rates are not covered.
  • Even pay. Bonuses or overtime in a single week can push that week over the threshold.
  • Not included: benefit-in-kind costs, paid leave cover, training and equipment unless you enter them under other costs, and any employer contribution under auto-enrolment beyond the pension percentage you enter.
FAQ

Questions people ask

How much employer PRSI do I pay in 2026?

For a Class A employee, employer PRSI until 30 September 2026 is 9% of pay where weekly pay is €552 or less, and 11.25% of all pay once it is above €552. From 1 October 2026 the rates are 9.15% and 11.40%. Below €38 a week, Class J applies at a much lower rate. The rates include the 1% National Training Fund levy.

Is employer PRSI charged on all of an employee's pay?

Yes. Once weekly pay passes €552, the higher rate applies to the whole week's pay, not just the part above the threshold, and there is no upper limit. That is why a small pay rise just over the threshold can increase the employer's cost by more than the rise itself. Employers pay PRSI even when the employee's own pay is too low for employee PRSI.

Do employer pension contributions attract PRSI?

No. The Department of Social Protection's PRSI Employer Guide says pension contributions made by the employer to an employee's pension are not included in pay for either employee or employer PRSI. Contributions the employee pays from their own salary are included, so they do not reduce employer PRSI in the private sector. Paying part of a package as an employer pension contribution can therefore reduce PRSI.

What else does an employee cost beyond salary and PRSI?

Common extra costs include employer pension contributions, health insurance, paid leave cover, training, equipment, software and office space. None of these is set by law at a fixed rate, so use your own figures. Enter these under other annual costs to see the full yearly and monthly cost and how many euro of cost each euro of salary brings.

Why did employer PRSI rise in October 2026?

The Department of Social Protection's 2026 rate tables raise both the employee and employer Class A rates by 0.15 percentage points from 1 October 2026: employer PRSI goes from 9% to 9.15% and from 11.25% to 11.40%. The calculator's default spreads 2026 as 39 weeks at the earlier rates and 13 weeks at the new ones; you can switch to the new rates for a full year.

Sources

  1. Department of Social ProtectionPRSI 2026 Contribution Rates and User Guide (SW 14) · retrieved 2026-10-16
  2. Department of Social ProtectionPRSI Class A Rates · retrieved 2026-10-16
  3. Department of Social ProtectionPRSI Employer Guide, January 2026 (sections 7 and 8) · retrieved 2026-10-16

Last verified: CalcBloc Editorial Team