Calculate the true total cost of hiring an employee in Ireland — including Employer PRSI, pension, benefits, and one-off costs. All 2026 rates.
When employers advertise a role at €45,000, the actual cost to the business is significantly higher. Employer PRSI alone adds over €5,000 for a €45,000 salary. Add pension contributions, health insurance, equipment, and recruitment costs, and the first-year cost of a new hire can easily reach 130–150% of the stated salary.
Employer PRSI is the most significant additional employment cost in Ireland. For annual earnings above €22,932 (weekly €441), the rate is 11.15%. For earnings at or below that threshold, the rate is 8.8%. Employer PRSI applies to gross salary including bonuses. It is due to Revenue by the 23rd of the following month alongside the PAYE withheld from the employee.
A software developer is hired on €60,000/year with a €3,000 annual bonus, 5% employer pension, and €1,200 health insurance. Equipment costs €1,500 and recruitment cost €4,000.
Yes. Employer PRSI is a deductible business expense for corporation tax purposes. It is included in staff costs in the company's profit and loss account. This means the effective cost of employer PRSI is reduced by the corporation tax relief — at the 12.5% CT rate, the net cost of €7,025 employer PRSI is approximately €6,150 after tax relief.
No. Employer PRSI is calculated on the employee's gross cash wages, not on total employment cost. Employer pension contributions are a separate cost and do not reduce the employer PRSI liability.