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Cost of an Employee Calculator Ireland (2026)
The salary is only the start. See what a hire really costs once employer PRSI and the new auto-enrolment pension contribution are added — no signup, no email wall.
| Gross salary | €40,000 |
| Employer PRSI 11.25% | + €4,500 |
| Auto-enrolment 1.5% employer | + €600 |
| Total statutory cost | €45,100 |
An employee on €40,000 costs the employer about €45,100 a year (Jan–Sep 2026) — the salary plus €4,500 employer PRSI at 11.25% and €600 auto-enrolment pension contribution. That's roughly 12.8% on top of the gross salary, before equipment, insurance or benefits.
If you're hiring for the first time in 2026, two things changed that catch employers out. First, auto-enrolment is now live — for any eligible hire not already in a pension scheme, you're paying 1.5% on top whether you planned to or not (and that's heading to 6% over the next decade). Second, employer PRSI steps up again on 1 October. Most "cost of employee" tools online either ignore both or hide the answer behind a lead-capture form — this one just tells you, instantly.
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What an employee costs in Ireland (2026)
On top of gross salary, Irish employers pay two statutory amounts: employer PRSI on all pay, and — since 1 January 2026 — the auto-enrolment pension contribution for eligible staff who aren't already in a payroll scheme.
Employer PRSI (Class A)
| Period | Weekly pay ≤ €552 | Weekly pay > €552 |
|---|---|---|
| 1 Jan – 30 Sep 2026 | 9% | 11.25% |
| From 1 Oct 2026 | 9.15% | 11.4% |
The rate applies to all of the pay, not just the slice above the threshold — €552 a week is about €28,700 a year, so most full-time salaries sit on the higher rate.
Auto-enrolment (My Future Fund)
For eligible employees (aged 23–60, earning over €20,000, not already in a payroll pension), the employer contributes 1.5% of gross pay (on pay up to €80,000) in 2026–2028. The rate rises every three years — 3%, then 4.5%, reaching 6% by year 10 — so it's worth budgeting ahead. See our auto-enrolment calculator for the employee's side.
This is the statutory payroll cost only. Real hiring budgets also cover equipment, software, insurance, recruitment, training, holiday/sick cover and any benefits — many firms plan for 1.2–1.4× salary all-in.
People also ask
How much does an employee really cost in Ireland?
About 11–13% on top of salary in statutory costs. A €40,000 hire ≈ €45,100/year: salary + €4,500 employer PRSI (11.25%) + €600 auto-enrolment (1.5%).
What is the employer PRSI rate in 2026?
9% where weekly pay is €552 or less, 11.25% above — on all the pay. From 1 October 2026: 9.15% / 11.4%.
Do employers have to pay auto-enrolment?
Yes, for eligible staff not already in a payroll pension: 1.5% of gross (up to €80,000) in 2026–2028, rising to 6% by year 10.
What's not included here?
Equipment, insurance, training, recruitment, holiday/sick cover and benefits — budget 1.2–1.4× salary all-in for a realistic figure.
Related Ireland calculators
Sources: Citizens Information — Paying social insurance (PRSI), gov.ie — Auto-enrolment. Estimates for planning only — not professional advice.