Tax

PRSI to increase by 0.2% by 2028 to maintain state pension age

Incremental increases to employer, employee and self-employed Prsi rates will come into force in January

Among reforms to the state pension system include the introduction of flexible access to the state’s contributory scheme, to allow people who defer their pension at age 66 to receive an actuarially adjusted higher payment rate up to age 70. Picture: Getty

Incremental increases to all classes of Prsi have been approved by Cabinet to support the retention of the state pension age at 66.

According to the long-awaited Prsi Roadmap, announced in Budget 2024 and now agreed by government, will see Prsi increase by 0.2 percentage points by 2028.

The move will affect employers, employees and the self-employed, and forms part of sweeping reforms to the social welfare system.

Among reforms to the state pension system ...