What are USC and PRSI and How Do They Affect My Salary?
If you're an employee in Ireland, you'll see three main deductions on your payslip: Income Tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI). Understanding USC and PRSI is key to figuring out your true take-home pay.
Ultimate Salary Calculator Team
Our content is written and reviewed by finance and tax enthusiasts to ensure accuracy.
What is Universal Social Charge (USC)?
USC is a tax on your total income. It was introduced in 2011 to replace the income levy and health levy. Unlike income tax, there are very few tax credits or reliefs that can be used to reduce it. It's charged in bands, with the rate increasing as your income rises.
What is Pay Related Social Insurance (PRSI)?
PRSI contributions are made by both employees and employers and go towards the Social Insurance Fund. This fund pays for a wide range of social welfare benefits. The amount you pay is a percentage of your earnings, and most employees fall into 'Class A'.
Example: A €45,000 Salary
Let's see these deductions in action. Here is the breakdown for someone earning €45,000 a year under the 2025 tax rules.
Take-Home Pay (Annually)
€2,692.38 per month
Gross Salary
€45,000.00
€3,750.00 / month
Total Deductions
€12,691.38
€1,057.62 / month
Your Personal Allowance
€4,000.00
Total tax credits
Effective Tax Rate
28.20%
Total deductions as % of gross salary.
Deductions Breakdown
As you can see, in addition to Income Tax, a significant amount is deducted for USC and PRSI. Our Irish salary calculator handles all these complex calculations for you automatically.