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Payslip

Learn what an Irish payslip must show, the 2026 deductions it lists and your legal duties as an employer.

Published Wednesday 30 September 2026

Table of contents

Key takeaways

  • A payslip is a written statement of an employee’s gross pay and every deduction, and Irish employers must provide one with each wage payment.
  • Statutory deductions cover income tax, Universal Social Charge (USC) and Pay Related Social Insurance (PRSI). Class A PRSI rates rise by 0.15% on 1 October 2026.
  • My Future Fund auto-enrolment adds employee and employer pension lines to pay statements for eligible staff from 2026.
  • Correct honest mistakes quickly and keep payroll records for six years.

What is a payslip?

A payslip is a written statement you give an employee each payday. It shows their gross pay, each deduction and the net amount they take home.

Think of it as an itemised receipt: the take-home figure only makes sense when every line above it adds up. It can cover salary, hourly wages, commission and expense reimbursements such as mileage. A free payslip template gives you a layout to start from.

What must a payslip show in Ireland?

The legal minimum is gross pay, plus the nature and amount of every deduction. Section 4 of the Payment of Wages Act 1991 sets this out for every wage payment.

Extra detail helps staff check their pay. According to Citizens Information guidance on payslips, it can also include:

  • the employee’s name and Personal Public Service (PPS) number
  • your business name and employer registration number
  • the pay period
  • cumulative pay for the year so far
  • tax credits and the standard rate cut-off point

Common payslip terms explained

Irish pay statements use plenty of shorthand, so knowing each line helps you answer staff questions.

Pay and income tax terms

These lines show earnings and how income tax is worked out:

  • Gross pay: total earnings before any deductions
  • Net pay: the amount your employee takes home after all deductions
  • PAYE: Pay As You Earn, the system for deducting income tax from wages
  • Tax credits: amounts that reduce the income tax due
  • Standard rate cut-off point: the income taxed at 20% before the 40% rate applies
  • Tax basis: how credits and the cut-off point are applied, for example, year to date or per pay period

USC, PRSI and year-to-date terms

These lines cover social charges and running totals:

  • USC: a tax on total income, charged alongside income tax
  • PRSI EE: the employee’s share of PRSI
  • PRSI ER: your share of PRSI as the employer, paid on top of wages
  • PRSI class: the social insurance class the employee pays under, such as Class A
  • Insurable weeks: the weeks of PRSI contributions recorded for the pay period
  • Cumulative pay: total gross pay earned so far this tax year

Deductions on a payslip

Payroll deductions are either statutory, which you must take by law, or voluntary, which your employee agrees to. Here are the 2026 figures.

Income tax

Income tax rates and bands are unchanged for 2026, according to the Revenue Budget 2026 summary. For a single person:

  • the first €44,000 is taxed at 20%, which is the standard rate cut-off point
  • the balance is taxed at 40%
  • the personal tax credit is €2,000
  • the employee tax credit is a further €2,000

Universal Social Charge

Income of €13,000 or less is exempt from USC, as Citizens Information explains. Above that, all income is charged using the 2026 USC bands:

  • 0.5% on the first €12,012
  • 2% on the next €16,688
  • 3% on the next €41,344
  • 8% on the balance

PRSI

Class A PRSI rates change partway through 2026, as set out in Citizens Information on PRSI. The Department of Social Protection advance notice confirms the rise on 1 October 2026:

  • employees earning over €352 a week pay PRSI on all their earnings
  • employee PRSI is 4.2% until 30 September 2026, then 4.35% from 1 October 2026
  • employer PRSI on weekly earnings up to €552 is 9%, then 9.15% from 1 October 2026
  • employer PRSI on weekly earnings above €552 is 11.25%, then 11.4% from 1 October 2026

Voluntary deductions and My Future Fund

Voluntary deductions include pension contributions, health insurance, union subscriptions and credit union savings. Since 1 January 2026, payslips for eligible staff also show My Future Fund, the State’s pension auto-enrolment scheme.

Under the auto-enrolment rules for employers, staff aged 23–60 earning €20,000 or more a year join automatically. They must have no existing supplementary pension. For 2026–2028, your employee pays 1.5% of gross pay, you match it with 1.5% and the State adds 0.5%.

Both your contribution and your employee’s appear on the payslip, but the State top-up is collected separately, as gov.ie contribution examples show. Contributions are calculated on gross pay but taken from net pay after tax, USC and PRSI.

Your legal duties as an employer

Your duties go beyond getting the figures right. Under the Act and related rules, you’ll need to:

Failing to provide a payslip, or giving a false one, is an offence that Citizens Information says can lead to a fixed payment notice. In 2024, WRC inspections recovered €2.16 million in unpaid wages, according to the WRC annual report 2024. For the full picture, review your responsibilities as an employer.

Printed or electronic payslips

You can choose whether to give printed or electronic payslips, according to Citizens Information. Electronic versions can be emailed or shared online, and online payroll software can create them with each pay run.

Staff can also view an Employment Detail Summary in Revenue myAccount. It shows pay, income tax, USC and PRSI, but leaves out non-statutory deductions such as union subscriptions.

How to fix a payslip mistake

WRC guidance confirms a statement with an accidental, good-faith error is still valid. Correct it with these steps:

  1. Check the payslip against your payroll records and timesheets.
  2. Tell your employee what went wrong and when you’ll correct it.
  3. Issue a corrected version showing the right gross pay and deductions.
  4. Pay any shortfall, or agree how to recover an overpayment and show it on the next one.
  5. Update your payroll settings so the same error doesn’t happen again.

An employee can complain to the WRC about an unlawful deduction within six months of it. Citizens Information explains this extends by a further six months for reasonable cause.

Simplify your pay runs with Xero

Accurate pay statements start with accurate pay data. Xero connects with payroll apps, so wages, tax and deductions flow straight into your accounts. You’ll cut manual entry and see payroll costs next to your other numbers. Try Xero today and get one month free.

FAQs on payslips

Here are quick answers to other common payslip questions.

Can an employer refuse to give a payslip?

No, it’s a legal duty each time you pay wages. Issue payslips from your first pay run, even with one employee.

How long should you keep payslips?

Revenue counts the six years from the end of the relevant tax year. So keep 2026 payroll records until at least the end of 2032.

Is a payslip proof of income?

Yes, Citizens Information confirms it can be used as proof of earnings, tax paid and pension contributions. Staff may need recent ones to apply for a loan or rent a home.

What’s the difference between a payslip and an Employment Detail Summary?

The Employment Detail Summary replaced the paper P60 and shows the pay and statutory deductions you report to Revenue. The payslip is the record for each pay period and also lists voluntary deductions.

Related terms

Learn more about payslips

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Disclaimer

This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.