PRSA Funding opportunity Oct 24
)
PRSA Funding opportunity
With effect from 1 st January 2025 employers can only contribute up to 100% of an employee’s or director’s salary to a PRSA. So, if someone earns €60,000 in 2025, their employer can contribute up to €60,000 to their PRSA for that year—no more. This sets clear boundaries for contributions and keeps everything tied to the salary level.
Presently there is no limit to the amount an employer can contribute to a PRSA for an employee or director.
From 1st January 2025 PRSA contributions above the 100% salary limit will be subject to PAYE taxes. Also, the company will not receive a cost deduction when calculating their Corporation tax liability .
If you wish to make a once-off contribution to PRSA which exceeds 100% of the employees, and director salary there is still time to do so before the new limits take effect on 1 st January 2025.