Increases to Employer and Employee PRSI rates from 1st October 2024
The recent announcement in Budget 2024 has introduced significant changes to the Pay-Related Social Insurance (PRSI) system in Ireland, set to take effect on 1 October 2024. These changes encompass adjustments to PRSI rates for both employees and employers across various classes, as well as modifications to self-employed contributions. Understanding these changes is crucial for both employers and employees. For employers, the adjustments will impact payroll calculations, budgeting, and compliance requirements. Employees, on the other hand, need to be aware of how these changes will affect their net income and the benefits they are entitled to.
How it will effect businesses..
These modifications include a 0.1% increase in PRSI rates for both employees and employers across different classes. For employers, the lower PRSI rate will rise from 8.8% to 8.9%, while the higher rate will increase from 11.05% to 11.15%. Self-employed individuals will also see adjustments in their contribution rates. For employers, these changes mean they need to update payroll systems, revise budgeting plans, and ensure compliance with the new regulations. Employees should understand how this increase will impact their take-home pay and the social benefits they receive. Staying informed about these updates is crucial for effective financial planning and compliance.
NB
Just when you through things couldn’t get any worse, remember that the new pension auto-enrolment scheme is due to come into effect in 2025.
TAlk to one of our team today?
If you want to find out more about how outsourcing could work for your organisation, your can click here .
At Solve Outsource, we have friendly and expert staff who can help companies understand and meet the challenges ahead.