4 (Four) day week - tax implications?

Dinarius

Registered User
Messages
506
My wife, a civil servant, is considering switching to a four day week.

She has a gross of €70,000.

What would be the tax implications of this?

We have no children. I am self-employed.

I presume she would take home more than 4/5 of her current net?

Many thanks.

D.
 
When I switched to a 4 day week some years ago, my net pay reduced by approx 16%

I would have thought that a €14,000 reduction in gross pay would come out at around nett €5,950.

Deduction as follows
Pension related deduction of €1,400
PAYE of €5,166
PRSI of €504
USC of €980

If you plug the figures into [broken link removed]

You get nett of €41342

And €35478 so slight difference.
 
as what gipimann and joe saying, Going off the rate of 70000, civil servant pay will be cut by the 20%.
If you have a standard cut of pay of 32800 (or 41800 if you have transferred 9000 of partners, which is often done when one is self employed) the salary will still be in the high rate of tax, resulting in approx half of the difference in pay in net values, so net pay approx 6500/7000 down... ish .. ( dependant on which rate of prsi, D rate or A rate, usc of 7% tax 41%
The service for superannuation will also be effected, but there are ways to maintain the max tax free allowance should overall service have a shortfall of the 40 year max.
any queries dont hesitate to give me a shout.
 
Last edited:
Back
Top