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Budget Changes
Updated Jan 2026

What is PRSI Ireland? Classes, Rates & Benefits Explained 2025

Pay Related Social Insurance (PRSI) is a fundamental component of Ireland's social insurance system, yet many workers don't fully understand what they're paying or what benefits they're entitled to re...

14 November 2025
3 min read

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PRSI (Pay Related Social Insurance) is a mandatory contribution that funds social welfare benefits like State Pension, Jobseeker's Benefit, and maternity leave. Most PAYE workers pay 4% of their income in PRSI.

While PRSI itself isn't refundable like income tax, understanding how it works helps you manage your overall tax position. Our specialists ensure your tax is correct across all elements—income tax, USC, and PRSI.

📊 PRSI Key Facts

  • Employee rate: 4% (Class A workers)
  • Weekly threshold: €352 (below this, no PRSI)
  • What it funds: State Pension, Jobseeker's, Maternity
  • Employer contribution: 11.05%

What is PRSI?

PRSI is a social insurance payment that builds up your entitlement to benefits. Your contributions are recorded by the Department of Social Protection and determine your eligibility for:

  • State Pension (Contributory)
  • Jobseeker's Benefit
  • Illness Benefit
  • Maternity/Paternity Benefit
  • Carer's Benefit

PRSI Classes

The class of PRSI you pay depends on your employment type:

Class Who Rate
Class A Most employees 4%
Class S Self-employed 4%
Class B/C/D Civil/public servants Varies

PRSI vs Income Tax & USC

Your payslip shows three main deductions:

  • Income Tax: 20%/40% depending on earnings
  • USC: 0.5%–8% on different portions of income
  • PRSI: 4% for most employees

Income tax can be reduced through tax credits and reliefs. PRSI and USC are generally fixed based on income.

💡 Important

While you can't reduce PRSI, you may be entitled to income tax refunds from emergency tax, rent credit, medical expenses, and more.

Tax Reliefs You Can Claim

Focus on income tax reliefs to reduce your overall bill:

The average refund our clients receive is €1,080.

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No refund, no fee • Average refund €1,080 • TAIN: 77632V

Frequently Asked Questions

Can I get a PRSI refund?

Unlike income tax, PRSI isn't generally refundable. However, you may get income tax refunds from other reliefs.

Do I pay PRSI on all income?

If you earn less than €352/week, you don't pay PRSI. Above that, you pay 4% on all earnings.

Can I check my PRSI contributions?

Yes—check your contribution history on MyWelfare.ie to ensure you're building up State Pension entitlement.

Filed under:Budget Changes

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