This increase affects most PRSI classes for employees, employers, and the self-employed, impacting take-home pay and payroll costs. These are part of a series of planned incremental increases to help fund the Social Insurance Fund. 

Details of the Increase

• Effective Date: October 1, 2025. 
• Percentage: All PRSI contribution rates will increase by 0.1%. 
• Purpose: The increases are a multi-year plan to support the Social Insurance Fund and help retain the State Pension age at 66. 

Impact on Different Groups

• Employees: You will see a small reduction in your take-home pay. 
• Employers: Payroll calculations will be affected, and you should incorporate these increases into your budgeting. 
• Self-Employed: PRSI contribution rates for the self-employed will also increase. 

What to Do

• Review Your Payroll: Ensure your payroll system is updated to reflect the new rates from October 1, 2025. 

• Budget Accordingly: For employers, factor the increased costs into your Q4 2025 budgeting and forecasting. 

• Communicate with Employees: Inform your employees about the small reduction in their take-home pay to ensure they are prepared.