Celebrating National Payroll Week 2026: The Numbers Every Payroll Team Should Know

National Payroll Week celebrates the professionals who manage Ireland’s payroll. For bureaus, accountants and bookkeepers, see this post as an opportunity to refresh on 2026’s rates, PRSI changes, auto-enrolment compliance, and statutory pay. This blog gives you a refresher of the essentials that your payroll team needs to know and that your clients could find handy, from managing the October PRSI increase to ensuring every eligible employee is enrolled in Auto Enrolment.

What Is National Payroll Week and Why It Matters

National Payroll Week honours the expertise of payroll teams keeping Ireland’s workforce paid correctly. For practices managing payroll, 2026 has been a busy year year and will continue that way. The MyFutureFund Auto-Enrolment pension scheme has been live since January and PRSI rates are rising in October. Missing these changes could expose clients to non-compliance, penalties, and employee disputes.

The October PRSI increase is a deadline that will catch employers off guard if your bureau doesn’t flag it soon. One day of miscalculation after the 1st of October could come with consequences, and the complexity of Auto-Enrolment only adds fuel to the fire.

National Payroll Week could be taken as a moment to audit your payroll process. Are you tracking the October PRSI increase? Is every employee who should be auto-enrolled actually enrolled? Are you calculating other statutory pay like Maternity Benefit correctly? Let’s discuss these in further detail below.

Do You Know Your Irish Payroll Calculations?

What’s the difference between Gross Pay and Net Pay in Ireland?

Gross pay is the full agreed salary before anything is deducted. Net pay (also known as take-home pay) is what employees actually receive after PAYE, PRSI, and USC are removed.

In Ireland, net pay can be significantly lower than gross, and employees often don’t understand why until you break down their deductions. Clear communication about PAYE, PRSI, and USC at onboarding reduces queries and builds trust.

A €40,000 gross salary might result in net pay of around €30,000 or less, depending on tax band, PRSI class, USC contributions, and any pension deductions. When employees see their payslip, they’re often shocked by how much comes out. Many employers don’t explain this upfront, leading to disputes later. A clear conversation on day one prevents misunderstandings in the future.

PRSI Increase coming in October 2026

From the 1st of October 2026, PRSI rates are rising in Ireland. This is a big change that could easily catch employers off guard if they’re not made aware of it.

Employee PRSI moves from 4.20% to 4.35%. Employer PRSI rises from 11.15% to 11.30%.

Even this 0.15% shift adds up across a payroll. A few days of underpayment or overpayment can trigger compliance issues, employee complaints, and wage disputes. You need to flag this change that’s happening on the 1st of October in your calendar now, ensure that your payroll software will update this change on time, and confirm the change is applied correctly.

Current tax rates, USC rates and PRSI rates

For 2026, Ireland’s income tax bands remain stable at 20% on income up to €44,425 and 40% above that (for most workers).

USC is charged in bands that also remain fixed. 0.5% on the first €12,012, 2% on the next €16,688, 3 percent on the next €41,344, and then 8% on anything above that. PRSI class depends on employment type, but most employees pay Class A: 4.20% in 2026 (rising to 4.35% from October 2026).

What Holiday Pay Am I Entitled to in Ireland?

Most employees in Ireland are entitled to four weeks of paid annual leave per year. For part-time and irregular-hours staff, holiday entitlement is usually calculated as 8% of hours worked, capped at four weeks.

The key to holiday pay compliance is recording it correctly. Is it being accrued weekly? Paid out when leave is taken? Paid out when an employee leaves? The approach should be clear, consistent, and communicated upfront so there’s no dispute when it’s time to calculate final pay.

Statutory Pay in Ireland Explained in Simple Terms

What is Statutory Sick Pay in Ireland in 2026?

As of the 1st of January 2024, Statutory Sick Pay in Ireland means that employees are entitled to 5 days of paid sick leave per calendar year, paid by the employer at 70% of normal pay up to a maximum of €110 a day (whichever is lower).

To qualify for SSP, an employee must have worked continuously for their employer for at least 13 weeks and must be certified by a medical practitioner as unable to work. A medical certificate is required from day one of sick leave.

If an employee is off sick for more than 5 days and has enough PRSI contributions, they can apply for Illness Benefit from the Department of Social Protection from day 6 onwards. SSP covers days 1 to 5 and Illness Benefit takes over from day 6. Sick days can be taken consecutively or non-consecutively throughout the calendar year. Unused days cannot be carried forward to the next year.

How much is Maternity Leave and Paternity Leave in Ireland?

Maternity Benefit in Ireland is paid by the Department of Social Protection (not the employer) at a standard rate of €299 per week for 26 weeks, provided the employee has 39 weeks of PRSI paid in the 12-month period before maternity leave starts.

Paternity Benefit is also paid by the Department at a weekly rate of €299 for 2 weeks. Because the Department pays, not the employer, employers can’t recover the cost but they must allow the leave.

Auto Enrolment in Ireland 2026

What is Auto Enrolment in Ireland?

Auto-enrolment is Ireland’s mandatory pension scheme called MyFutureFund, which started on the 1st of January 2026. Employers must automatically enrol eligible employees into a pension scheme and contribute on their behalf. Employees can opt out after six months and get a refund of their contributions.

Eligible employees are those aged 23 and 60 earning at least €20,000 per year (or more than €5,000 over 13 weeks). If you’re between 18-20 years old or 60-66 years old, you can still choose to opt in manually.

Here are the contribution rates over the first 10 years of Auto Enrolment:

• For the first three years, both the employee and the employer contribute 1.5%. The government contributes 0.5%.

• From years 4-6, both the employee and the employer contribute 3%. The government contributes 1%

• From years 7-9, both the employee and the employer contribute 4.5%. The government contributes 1.5%

• For over 10 years, both the employee and the employer contribute 6%. The government contributes 2%

For employers, this means a new payroll process. Employees must be identified, enrolled, and their pension contributions calculated and deducted every pay run. For further information on Auto Enrolment in Ireland, check out our blog on how is Auto Enrolment going in Ireland? September 2026 udpate.

What’s the latest on Auto Enrolment in Ireland?

MyFutureFund started at the beginning of 2026, and by now clients and employees should be set up. See how is Ireland’s auto-enrolment rollout going six months in and what to expect for the rest of 2026. Learn how to process Auto Enrolment in BrightPay in Ireland to see how the software handles enrolments, contributions, and reporting automatically.

Why Are Payroll Teams Switching to BrightPay in Ireland?

BrightPay handles Ireland’s complex tax rules automatically. The software calculates PAYE, PRSI, and USC for every pay run. It retrieves RPNs and sends PSRs through the software. BrightPay is a cloud-based payroll software, so it retrieves the latest legislation changes from Revenue and applies them in the background automatically while you work. That way, you’re always compliant and using the most up-to-date version of the software. It also means that BrightPay will apply the October 2026 PRSI increase automatically without you having to download the latest version of the software.

For hybrid or remote teams, BrightPay’s multi-user functionality means that multiple people can work in the same payroll file at the same time, with changes applied instantly while you all work. This brings that natural collaboration and team spirit you get from the office into your home offices and remote workspaces.

More importantly, BrightPay has full Auto Enrolment functionality. The software enrols eligible employees, deducts contributions, and handles exemption claims where legally permissible. For statutory leave, BrightPay also calculates Maternity Benefit, Paternity Benefit, and statutory leave entitlements correctly.

See what’s changed for payroll teams in 2026 in our latest blog posts.

Ready to automate 2026’s payroll complexity? Compare BrightPay plans for small business payroll or book a BrightPay demo this Payroll Week.

Irish Payroll Questions We Hear All Year Round

What are Enhanced Reporting Requirements?

Since January 2024, employers must report certain non-taxable benefits and expenses to Revenue, including the remote working daily allowance, travel and subsistence, and the small benefit exemption. Further information on Enhanced Reporting Requirements.

What is the difference between gross pay and net pay?

Gross pay is the total before deductions. Net pay is what the employee actually receives once PAYE, PRSI and USC have been taken off. Net pay is sometimes called take-home pay.

What are the current PRSI and USC rates?

PRSI classes and rates depend on the employee’s category and earnings, and USC is charged in bands. Remember the October PRSI increase coming this year. Check what the current USC rates are and what the current PRSI rates are.

How much is Maternity Benefit and who pays it?

Maternity Benefit is paid for 26 weeks with a weekly rate of €299, funded by the Department of Social Protection. You must have at least 39 weeks of PRSI paid in the 12-month period before the first day of your maternity leave to receive Maternity Benefit.

What is Statutory Sick Pay in 2026?

Employees get 5 days paid sick leave per calendar year at 70 percent of normal pay up to a maximum of 110 euros a day. A medical certificate is required from day 1. After 5 days, employees can apply for Illness Benefit. Check Citizens Information for the full SSP guide.

What is auto-enrolment and when does it affect my payroll?

As of the 1st of January 2026, Ireland’s auto-enrolment scheme called MyFutureFund requires employers to enrol eligible employees into a pension and contribute on their behalf. This is mandatory and non-negotiable.

Can BrightPay handle PAYE, PRSI, USC and statutory leave automatically?

Yes. BrightPay calculates PAYE, PRSI and USC as part of the pay run, retrieves RPNs from Revenue and sends PSRs to Revenue. The software also processes auto-enrolment automatically.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.