Charged new PRSI rate 4.2% for work done in Sept?

[TheJackal]

I'd forgotten this changed to 4.2% from Oct 1, 2025. Quick question.

I noticed on my latest fortnigtly payslip dated Oct 9th I was charged 4.2% on the full salary, even though it only covered 9 of 14 days.

I was not changed 4.1% for the 5 days in Sept. Is that correct?

 

[Corola]

I doubt payroll are able to apply different tax rates to specific days. It's probably only a euro or so difference.

 

[ClubMan]

It's probably only a euro or so difference.

And any discrepancy will balance out if you request a rebalancing of your account on myAccount at/after the tax year end.

 

[Corola]

Having the rate increase on 1st Oct rather than 1st Jan was a bizarre choice. You might find you have some weighted average rate of 4.125% at the end of the year.

 

[Zion2022]

And any discrepancy will balance out if you request a rebalancing of your account on myAccount at/after the tax year end.

I don’t think this is the case? PRSI is a weekly tax so an annual review cannot ‘true-up’ without a daily/weekly view of when monies were received.

I think balancing statement only addresses USC and income tax?

 

[ClubMan]

Oh - I thought that it also balanced PRSI?

 

[Zion2022]

also balanced PRSI?

Open to correction but with 95% certainty I would say it does not.
It wouldn’t have the granularity of information required to do a full PRSI calculation given it is the only tax which relates to weekly pay rather than annual (it also now changes mid year which adds more complexity!).

Checked my own balancing statement from this year and the header is ‘PAYE/USC statement of liability for the tax year 2024’

 

[thecoffeepod]

The rate that applies is when the payroll is processed (not when the hours are worked/earn) so payments in October are 4.2% regardless if it's for work done in September or before( this is due to PAYE mod)

There is no blended rate for payroll under PAYE system

That's for self employed form 11s

 

[misemoi]

Yes, unfortunately it is on a paid basis...eg if you get an annual bonus it is usually on last year's work but taxed at current year rates which may be higher or lower.