USC vs PRSI
USC and PRSI both appear on Irish payslips, but they are not the same thing. USC is a tax on income. PRSI is social insurance.
- Written by
- Money Made Clear
- Type
- General information
- Sources
- Revenue / Department of Social Protection
- Last checked
- 28 May 2026
- Not advice
- General information only
General information only, based on official public sources. Not financial, tax, legal or welfare advice.
The difference at a glance
| Question | USC | PRSI |
|---|---|---|
| Full name | Universal Social Charge | Pay Related Social Insurance |
| What is it? | A tax on income. | A social insurance contribution. |
| Who manages it? | Revenue. | Department of Social Protection; usually deducted through payroll for employees. |
| What does it affect? | Your tax deductions. | Your social insurance record and possible benefit entitlements. |
| Can tax credits reduce it? | No. | No. |
What USC is for
USC is a charge on income. Revenue says USC is payable on employees' income, including notional pay, with some types of income exempt.
USC has its own rates and thresholds, separate from PAYE income tax.
Source: Revenue — USC rates and thresholds
USC exceptions: If annual income does not exceed €13,000, USC is not due; above that limit it applies to all chargeable income, not just the excess. At income of €60,000 or less, people aged 70 or older, or holding a full medical card at any time in the year, qualify for 0.5% on the first €12,012 and 2% on the balance. A GP visit card does not qualify; above €60,000 standard rates apply. Contact Revenue to arrange medical-card treatment. Non-PAYE income above €100,000 attracts an extra 3% surcharge on the excess (normally 11% combined USC on that slice). DSP payments and certain other income are exempt. These rules apply in 2026; the medical-card concession is already extended through 31 December 2027 under Finance Act 2025.
Source: Revenue — Medical-card USC extension through 2027.
Source: Revenue — Reduced USC rates.
Source: Revenue — Other USC rates.
What PRSI is for
PRSI contributions go to the Social Insurance Fund. The Department of Social Protection says this fund helps pay for social welfare benefits and pensions.
Your PRSI class and contribution record can affect whether you qualify for certain benefits, such as State Pension Contributory, Illness Benefit or Jobseeker's Benefit.
Source: Department of Social Protection — PRSI overview
Why they are easy to confuse
USC and PRSI both come out of your wages and both reduce take-home pay. On a payslip they may sit close together, which makes them look like one thing. They are separate deductions with different rules.
Where to learn more
For a full breakdown of each deduction, see What is USC? and What is PRSI?.
What this means in real life
On a payslip, USC and PRSI can look similar because both reduce net pay, but they represent different systems. USC is a charge on income calculated using its own bands and thresholds. PRSI is a social insurance contribution linked to contribution classes and potential access to benefits or the State Pension. A person can pay both in the same pay period, pay one but not the other, or see different treatment when earnings cross a threshold. Neither deduction is simply another name for PAYE income tax. This matters when checking a change in take-home pay because a Revenue credit may reduce PAYE without changing USC or PRSI. The detailed guides to USC and PRSI explain their calculations and purposes separately.
Related guides
Official sources
For current rules, rates and eligibility, check the relevant official public source.