Rates & sources
UK tax rates and thresholds, as published by HMRC. Scotland and Wales have devolved rates for income tax and property transactions.
Source: HMRC — Tax rates — figures refreshed at the start of each tax year.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
A realistic Ireland planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Employee Annual Salary (€)
€45,000
Weekly Hours
40 hours
Employer Pension Contribution (%)
€250 per month
Other Annual Benefits (€) — health insurance, etc.
0
After entering these figures, review total employer cost, employer prsi and prsi rate together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Total Employer Cost
This is the headline outcome of the calculation, but it is most useful when read alongside the supporting metrics below it rather than in isolation. Try changing one input at a time and watching how this total moves to understand which driver has the biggest impact.
Employer PRSI
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
PRSI Rate
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Employer Pension
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Hourly Salary Rate
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Total Hourly Cost
This is the headline outcome of the calculation, but it is most useful when read alongside the supporting metrics below it rather than in isolation. Try changing one input at a time and watching how this total moves to understand which driver has the biggest impact.
Method & assumptionsAuthoritative sources
This calculator models the total annual cost of employing a Class A worker in Ireland under 2024 Revenue rules. Employer PRSI is applied at 8.8% where weekly pay is at or below €496 (approximately €25,792 annually) and at 11.05% where weekly pay exceeds this threshold. The full salary — not just the excess — attracts the higher rate once the threshold is crossed. Pension contributions are expressed as a percentage of gross salary and added directly; they do not attract employer PRSI in most occupational scheme arrangements. Other benefits such as health insurance premiums are included as a flat annual figure and should reflect the employer's actual cost rather than the benefit-in-kind value assessed for tax purposes.
The hourly cost figures are calculated by dividing annual totals by the number of paid hours in the year (weekly hours multiplied by 52). This gives a loaded hourly rate useful for project costing and tender pricing. Note that the calculator does not include statutory sick pay (introduced in 2023 at 3 days, rising incrementally), employer liability insurance, recruitment fees, or training costs. These can add 5%–15% to the base figures depending on sector. Always verify PRSI rates and thresholds against the current Revenue.ie guidance for the relevant tax year before making employment decisions.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions, or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Frequently asked
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