Employer Costs and Employee Taxes in Ireland
When you hire in Ireland, employer PRSI of 11.25% plus 1.5% auto-enrolment pension keeps headline costs moderate. But annual PRSI increases through 2028 and pension ratcheting to 6% by 2036 mean costs are rising every year.
| Employer Contributions |
| Contribution |
Employer Rate |
| PRSI Class A (earnings above EUR 552/week) |
11.25% (rising to 11.40% from Oct 2026) |
| PRSI Class A (earnings EUR 552/week or less) |
9.00% (rising to 9.15% from Oct 2026) |
| Auto-Enrolment Pension (from Jan 2026) |
1.5% of gross (year 1-3) |
| Total Employer Cost |
~12.75% of gross salary |
| Employee Taxes |
| Tax / Contribution |
Employee Rate |
| Income Tax (standard band) |
20% (up to EUR 44,000 for single person) |
| Income Tax (higher band) |
40% (income above standard band) |
| USC (Universal Social Charge) |
0.5-8% (tiered by income) |
| Employee PRSI |
4.20% (rising to 4.35% from Oct 2026) |
| Auto-Enrolment Pension (employee share) |
1.5% of gross (year 1-3) |
Good to know: Ireland’s employer cost looks moderate at ~12.75% of gross, but that’s deceptive. The total compensation cost is driven by high gross salaries (Dublin tech roles command EUR 70,000-120,000), not by contribution percentages. A EUR 90,000 employee in Dublin costs the employer approximately EUR 101,250 in PRSI and pension alone, before any benefits. And with PRSI and pension both ratcheting up annually through 2028 and 2036 respectively, the cost trajectory is unambiguously upward.