Calculating Parental Leave Cost to Employee

Sweet Pea

Registered User
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Hi,

This is probably a silly question but I need to take parental leave next year to cover my 5 year old's school hols. I've done a rough calculation and it's about 4 weeks or 22 working days. It'll be taken here and there i.e. 4 days in Jan, 2 weeks in July, 1 week in October etc.

To make it more affordable, I'd like to spread the loss of income over the year, rather than having a considerably lower salary in the months I'm taking the leave (I'm paid monthly). I have a Credit Union budget account and am doing my sums for 2017. As the leave I'm taking totals roughly one month, I thought I would budget for one month's salary in my Cred budget account. So say I earn 2K net a month, I'll budget a loss of 2K and will pay €166 per month into the Cred. The months I'm taking parental leave, I will draw down the shortfall in income from the Cred so the loss of income will be spread evenly over 12 months.

My question is, do I need to budget one full month's salary? Or does the fact that I'm not earning for some of the year, reduce my tax? Therefore, reducing the amount of salary loss a little? Should I just budget for roughly 3/4 of my monthly salary?

Thanks
Sweet Pea
 
Ya in a month when you have zero income you will get the benefit of your tax credits so if you have a single credit and PAYE credit of €3,300 or €275 per month of a refund.
 
Take your salary for the year put it into Deloitte tax Calculator for 2017. Now take your salary and Devide it by 12 multiply by 11 new total salary for year put it into the Deloitte tax calculator this should show you how much less tax you will pay on the lower salary . Are you paying pension .Note you will need to save more money first part of year.
 
Take your salary for the year put it into Deloitte tax Calculator for 2017. Now take your salary and Devide it by 12 multiply by 11 new total salary for year put it into the Deloitte tax calculator this should show you how much less tax you will pay on the lower salary . Are you paying pension .Note you will need to save more money first part of year.
Hi jjm2016, may thanks for that. I'll do as you suggest. Yes I'm paying a pension - I'm public sector..
 
Sweet Pea run the Deloitte tax Calculator for 2015 and 2016 and cross check against actual p60 for 2015 and wages for 2016 to date.I suspect you will not have to pay pension or pension levy for this month you are taking off .I work in the private sector so I cant be sure my understanding is
correct .I expect posters on hear working in the public service can help you more.
 
Hi jjm2016, may thanks for that. I'll do as you suggest. Yes I'm paying a pension - I'm public sector..
As a public sector worker do your HR not give you the option of spreading your income equally across the year to cover the parental leave? I'm fairly sure they do in the civil service.
 
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