What are the current PAYE rates in Ireland?

Irish PAYE rates for 2025 are 20% on income up to €42,000 (single) or €84,000 (married), and 40% on income above these thresholds. Standard tax credits are €1,875 personal and €1,875 PAYE credit.

What is the employer PRSI rate in Ireland?

Employer PRSI rate is 11.05% on employee income over €352 per week, with a reduced rate of 8.8% on income between €352-€424 per week. There is no upper limit on PRSI contributions.

When are P30 payroll returns due?

P30 returns and payments are due by the 14th of the month following the pay period. For example, January payroll P30 is due by 14th February. Late filing incurs penalties and interest.

What is the minimum wage in Ireland for 2025?

The minimum wage in Ireland for 2025 is €12.70 per hour for experienced adult workers, with sub-minimum rates applying to employees under 18 and those in first two years of employment in certain circumstances.

Do I need Revenue-approved payroll software?

While not mandatory, Revenue-approved payroll software ensures compliance with Irish requirements including RPN support, correct tax calculations, and proper P30 return formatting. Manual payroll is complex and error-prone.

Payroll Setup Ireland (2025) - PAYE, PRSI, USC Guide | PayVat

Interactive Payroll Setup Guide

Explore different aspects of Irish payroll setup and compliance.

Initial Setup

PAYE Registration

Required

PRSI Registration

Required

USC Setup

Required

Universal Social Charge configuration

Payroll Software

Choose Revenue-approved payroll system

Step-by-Step Payroll Setup Process

Complete checklist for setting up payroll in Ireland.

Pre-Setup Requirements

Company Registration

Ensure company is registered with CRO and has tax number from Revenue

Employment Contracts

Prepare written employment contracts complying with Irish employment law

Employee Information

Collect PPS numbers, bank details, tax certificates, and emergency contacts

Revenue Registration

PAYE/PRSI Registration

ROS Access Setup

Establish online access for payroll returns and payments

Employer Registration Number

Receive unique employer registration number for payroll submissions

System Setup

Choose Payroll Software

Select Revenue-approved payroll system with RPN and PSC support

Configure Tax Settings

Setup current PAYE, PRSI, and USC rates and thresholds

Test Payroll Run

Process test payroll to verify calculations and reporting

Irish Payroll Tax Rates (2025)

Current rates for PAYE, PRSI, USC, and other payroll taxes.

Employee Deductions

PAYE (Pay As You Earn)

• Single: 20% up to €42,000, 40% thereafter
• Married: 20% up to €84,000, 40% thereafter
• Personal credit: €1,875
• PAYE credit: €1,875

PRSI Class A1

• Employee: 4% on income over €352/week
• No upper limit
• Covers social welfare benefits
• State pension contributions

USC (Universal Social Charge)

• 0.5% on income up to €12,012
• 2% on income €12,013 to €22,920
• 4.5% on income over €22,920
• 8% on income over €70,044 (self-employed)

Employer Costs

PRSI Employer

• 11.05% on income over €352/week
• 8.8% on income €352-€424/week
• No upper limit
• Significant cost consideration

Additional Costs

• Employer liability insurance
• Workplace pension contributions
• Payroll software costs
• Professional payroll services

Statutory Benefits

• Minimum 20 days annual leave
• 9 public holidays
• Sick leave (3 days statutory)
• Maternity/paternity leave

Payroll Compliance Calendar

Key dates and deadlines for Irish payroll compliance.

Monthly

14th

P30 return and payment due

February

15th

P60s to employees

February

28th

P35 annual return due

Additional Compliance Requirements

•P45 when employee leaves
•P46 for new employees without P45
•Benefits-in-kind reporting

•Pension auto-enrolment preparation
•Employment permit compliance
•Workplace Relations Commission

Essential Payroll Software Features

Key features to look for in Irish payroll software.

Core Features

✓Automatic PAYE/PRSI/USC calculations

✓RPN (Revenue Payroll Notification) support

✓P30 return generation and submission

✓Payslip generation and distribution

✓Bank file generation for payments

Advanced Features

✓Employee self-service portal

✓Leave management system

✓Pension scheme integration

✓Time and attendance tracking

✓Benefits-in-kind reporting

Simplify Your Irish Payroll Setup

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