All PRSI contribution rates will increase by 0.1% from 1 October 2025.
Changes to the PRSI rates and the A1 income band were announced in Budget 2024 to come into effect from October 1st this year. Employers should ensure they are using the correct PRSI rates in all payrolls with a pay date of Oct 1st and onwards.
Sage released an update (28.1) to their Sage Payroll (Micropay) software in September which contained these PRSI changes. This update should have been applied by anyone using the software prior to the 1st of October 2025. However, our support team have encountered a number of instances where clients have not applied this update or have applied it incorrectly and because of this, are working on incorrect PRSI rates.
If you find the PRSI rates are not correct you should reinstall the payroll software asap. If you continue to process the payroll with incorrect rates you will need to redo the payroll and my submissions to revenue.
You should ensure the Sage Payroll Update is applied. The simplest way to do this is to install it (even if you think you have done this before).