Zellis HCM 9.1: Updates for Irish payroll

Zellis, the UK and Ireland’s largest provider of payroll and HR software, has enriched its flagship solution to support Irish legislative changes to pensions and sick leave.

Zellis HCM 9.1 includes updated functionality to support the latest legislation covering Pay Related Social Insurance (PRSI) contributions. This legislation will apply to Irish payroll from the 2025/26 tax year.

Both employers and employees pay PRSI contributions, which are based on the size of an employee’s salary or wage. PRSI is the main source of financing for the government’s ‘Social Insurance Fund’, which pays for social welfare benefits and state pensions.

Supporting state pension-related changes to Irish payroll

Other important changes in Zellis HCM 9.1 include:

• Support for a new upper age limit for employees who are exempt from paying PRSI contributions. Both the default settings and warning messages have been changed to reflect that the upper age limit for exemption has risen from 66 to 70 years.
• The introduction of a State Pension (Contributory) (SPC) indicator. An SPC is a weekly payment made to people over 66 years based on their current PRSI contributions. The indicator consists of a new field in the system, which displays the value of each employee’s SPC based on the latest Revenue Payroll Notification.
• New process automation to set PRSI classes based on the value of the SPC indicator.

Enhancing Statutory Sick Leave for irregular workers

As well catering to employees in categories A and B for the purposes of statutory sick leave (SSL), Zellis HCM 9.1 has added support for Category C employees. These categories relate to the  SSL payment rates in the ROI Sick Leave Act 2022:

1. Employees who work for a set number of hours, for example, four hours each working day, at a fixed rate. In this instance, they receive €110 per day, or 70% of what they would have earned on their first day of sickness, whichever figure is lowest.
2. This category of employees works variable hours at a fixed rate. Therefore, they receive either €110 per day, or 70% of what they would have earned on their first day of sickness absence, whichever figure is lowest.
3. If an employee’s work pattern fits into neither of the above categories, they receive either €110 per day or their average hourly rate, whichever figure is lower.

These updates to enhance functionality for Irish payroll build on the previous release of HCM 9.0. This recent update introduced enhancements to payroll processing and pension scheme reporting. It also included tighter integration between onboarding and Zellis Background Checking.

Discover more resources for Irish payroll and HR.