Reducing number of working days - Tax payable?

traceyoh

Registered User
Messages
23
Hi There,

I may have to reduce my working week from 5 day to 4 day. My salary will be reduced by 20%, but im not sure about what taxes etc are payable on the new gross pay. I would really appreciate if someone could help me estimate this!

My current salary:

Gross Monthly Pay - EUR2585.00
PAYE - EUR102.83
PRSI - EUR103.40
USC - EUR124.18

My new salary if reduced to 4 day week:

Gross Monthly pay - EUR2068.00
PAYE - ??
PRSI - ??
USC - ??

My PRSI Code is A1.
Im married.

Not sure what other details are needed to calculate this.

Any info at all would be much appreciated!

Many thanks
 
The figures posted suggest you have the entire marriage credit as well as your own PAYE tax credit (your figures imply tax credits of ~€4,970).

Assuming the above is correct, and no change in your credits / SRCOP, you'll pay no PAYE, €83 in PRSI, and €88 in USC.

So your gross pay falls by €517 and your take home pay falls by €335.
 
Similar situation

Hi all,

I'm in a similar situation to the OP and didnt want to clog up the frontpage with a similar question.

In my case I would be opting for a 4-day week with the intention of dedicating more time to a legitimate side business. With the goal being to quit my current job and work the side-job full-time (all going well).

I would be married next year so marriage tax credits would apply.

My current salary:

Gross Monthly Pay - EUR3180
PRSI - EUR127.40
USC - EUR170.54

My new salary if reduced to 4 day week:

Gross Monthly pay - EUR2544.00
PAYE - ??
PRSI - ??
USC - ??

My PRSI Code is A1.
I will be married.
I am public sector so have Pension Levy on top those deductions if that is relevant.
Essentially I would like to find out what the drop would be take home, and then decide would I likely be able to generate further income through the side-business.

Thanks

Mike.
 
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