Say you are paid €40K p.a. This costs the employer €40K @ 10.75% = €4,300 in employer PRSI. If instead they restructured your remuneration package so that they paid you €35K and made a €5K employer contribution to your pension then their employer PRSI bill would be €3,762.5. They could top the employer pension contribution with their employer PRSI "saving" i.e. €4,300 - €3,762.50 = €537.50 making a total contribution of €5,537.50 at no additional cost to them. Just a small bonus that might help in some situations. The same employer PRSI saving should also apply to your own personal contributions if I recall correctly. I convinced an employer to do this a few years ago in order to top up the pension contributions for me and my colleagues. There may be other issues (e.g. pension tax relief funding limits) that I am ignoring here for simplicity.