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Employer Cost Calculator (Ireland)

Calculate the true cost of hiring an employee in Ireland including employer PRSI (8.8% or 11.05%), pension contributions, and other benefits using 2024 Revenue rates.

Ireland estimateLast reviewed 15 August 2026Reviewed after a tax-year or rule change

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When to use this calculator

  • Before accepting a pay change, bonus or contribution arrangement.
  • When you want a simple take-home or conversion estimate before payroll or filing.
  • When you need to convert between hourly, monthly and annual pay.
  • When you want to compare two pay scenarios using the same assumptions.

A realistic Ireland planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic Ireland planning example
InputValue
Employee Annual Salary (€)€45,000
Weekly Hours40 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. Then rerun the tool with one input adjusted.

How to read your results

Total Employer Cost

The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.

Employer PRSI

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

PRSI Rate

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Employer Pension

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Hourly Salary Rate

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Total Hourly Cost

The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.

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

  • !Using an assumption that is not supported by a current local quote, bill, statement or official source.
  • !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
  • !Mixing monthly and annual inputs without converting them consistently.
  • !Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

  • Run a second scenario with a cautious assumption so you can see the downside clearly.
  • Compare the result with the related calculators below before making a decision.
  • Check current local rules, eligibility and provider terms before applying or committing money.
  • Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.

Frequently asked

Employer PRSI (Pay Related Social Insurance) is a payroll levy paid entirely by the employer on top of an employee's gross wages — the employee does not contribute to this element. For Class A employees, which covers the majority of private-sector workers, the rate is 8.8% on weekly earnings up to €496 and 11.05% on weekly earnings above that threshold. The rate applies to the full salary once the threshold is crossed, not just the portion above it. These rates apply from 1 January 2024 and are set by the Department of Social Protection.

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