PRSI Changes Effective from 1 October 2024
In our previous Budget Speech Tax Updates blog , we mentioned the upcoming changes to Pay Related Social Insurance (PRSI), which will take effect on 1 October 2024.
PRSI contributions, collected by Revenue for the Department of Employment Affairs and Social Protection (DEASP), fund pensions and Social Welfare benefits.
Most employees and employers must pay PRSI, with some exceptions. For a comprehensive overview of PRSI and its details, you can visit the government’s web page.
Contribution Rate Increase
The Social Welfare Act 2024, signed on 15 July 2024, established the following time frame for increases in the rates for all PRSI classes, with the exception of Class M (Exempt) and the employee contribution payable under Class J (0%), from 1 October 2024:
| Effective Date | Increase |
|---|---|
| 1 Oct 2024 | 0.1% |
| 1 Oct 2025 | 0.1% |
| 1 Oct 2026 | 0.15% |
| 1 Oct 2027 | 0.15% |
| 1 Oct 2028 | 0.2% |
All PRSI contribution rates, for both employers and employees where applicable, will increase by 0.1% from 1 October 2024.
The official new rates applicable to each class were published by the DEASP here. (Note that the changes to the income bands discussed below are not incorporated in the linked document.)
Class A Income Band Changes
The threshold for the higher rate of Employer PRSI under Class A is set to increase from €441 per week, €882 per fortnight (“Every 2 weeks” on SimplePay), and €1,911 per month, to €496 per week, €992 per fortnight, and €2,149 per month.
SimplePay will make a corresponding change to the threshold for the four-weekly pay frequency (i.e. the “Every 4 weeks” one), increasing it from €1,764 to €1,984.
The aim of this increase is to allow employers to pay the lower rate of 8.9% in respect of any employee working up to a 39-hour week on the national minimum wage.
Summary of Changes to Class A
| PRSI Subclass | How much of weekly income | Weekly Income Band | Employee % | Employer % | |||
|---|---|---|---|---|---|---|---|
| Before 1 Oct | From 1 Oct | Before 1 Oct | From 1 Oct | Before 1 Oct | From 1 Oct | ||
| A0 | All | €38–€352 | €38–€352 | Nil | Nil | 8.80 | 8.90 |
| AX | All | €352.01–€424 | €352.01–€424 | 4.00 | 4.10 | 8.80 | 8.90 |
| AL | All | €424.01–€441 | €424.01–€496 | 4.00 | 4.10 | 8.80 | 8.90 |
| A1 | All | More than €441 | More than €496 | 4.00 | 4.10 | 11.05 | 11.15 |
All changes have already been made on our system and will be incorporated on payslips from 1 October 2024. For more detailed information regarding PRSI on SimplePay, please read our help page.
Should you have any questions regarding the PRSI changes, or need any assistance with your payroll, please feel free to reach out to our friendly Support team at support@simplepay.cloud.
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Take care,
Team SimplePay