Expensive Dublin & take home pay?

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ClubMan

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Expensive Dublin & take home pay?

Hi All,
I read in one of the Sunday papers that

1) Dublin is one of the most expensive cities in the world (no surprise)

2) Take home pay (relative to gross) is fairly high in Ireland. It cites an example that someone earning 100K in Ireland will take home 70K ????

Im at a loss to understand the second point.

Any one care to clarify? I would have thought it would have been a little over 50K

Title edited by ClubMan.

Elvis
 
According to [broken link removed] somebody on €100,000 will pay c. €63,000 after tax and PRSI (assuming basic credits etc.). So with additional credits maybe €70,000 take home isn't infeasible? Did the article specify the assumptions (tax credits, single or married etc.)?
 
somebody on €100,000 will pay c. €63,000 after tax and PRSI
Click to expand...

Should this not read...

somebody on €100,000 will take home c. €63,000 after tax and PRSI ???
 
Why are you at a loss to understand the second point?

Surely most people now know that income tax, and especially PRSI, are quite low in Ireland compared to other countries.

e.g. our PRSI rate is 4% + 2% Levy, while this can be up to 20% in other countries.

Here are some data for a single PAYE worker from 2002 (I don't guarantee them 100%)
Code: 
GROSS    NET         TAX
-----    ---         ---   
36K      27,324.16   24.1%
50K      35,054.56   29.9%
100K     63,054.56   36.9%
Note that tak-home pay would be greater if the person had a pension or aother tax reliefs. So a person on 100k could take home 70k.

Another example: my father earns 52k, and pays about 15% in income tax, so takes home about 44k.

Contango10

Edited by ClubMan to fix tabular data formatting.
 
Expensive Dublin

Thanks for the replies.

I presumed that the second point was an error, 70K seemed a lot to be taking home on a salary of 100K.

My salary is 44K, I take home just under 30K ~ 31.8 tax.

Just curious as to how one gets down to 15%?


cheers
 
Re: Expensive Dublin

According to Karl Grabe's calculator €44K equates to c. €32K after standard credits/PRSI.
 
Expensive Dublin

Thanks, I reclon mins is slightly different as Im a contractor for my own ltd company. Hence I get no PAYE allowance in my tax credits. Still shouldnt be over 2K of a difference. Maybe Im overpaying.
 
about 15% income tax

The main reason his income tax is so low is that it is a one-earner married couple situation.

So, first 37k is taxed at 20%, balance at 42%. He gets two personal tax credits (1520*2) plus PAYE tax credit of 800.

Also Pension is 6.5% of salary, so 42% tax relief on that. Also tax relief at 42% on employee expenses and Permanent Health Insurance.

Then standard-rate relief on refuse charges, union dues plus tax relief at source on Mortgage interest and VHI.

End-result: about 15% of salary is taken in tax.

As a single person, I pay about 19%-22%, don't have payslip to hand.

Contango10
 
.

I wonder what the average wages for irish people (or people living in Dublin) is? It would be interesting to compare this figure to other countries.

I looked for this information before, but couldn't find it anywhere. I was also wondering what percentage of people are in the PAYE system and how many are on income support.
 
Re: .

As far as I remember the national average industrial wage is c. €26,000 while the minimum wage is c. €6.30/hour giving an annual minimum wage of c. €13,000. These are not exact figures! You can probably find the relevant figures on the CSO site if you dig around a bit.
 
Re: .

From figures I read recently in the Financial Times, average incomes in Ireland are apparently 3rd or 4th highest in the EU. I think Germany and one or two of the Scandanavian countries are highest. Portugal is the lowest. I cant vouch for the accuracy of this.

The Revenue have figures as to how many people are taxed on PAYE but I personally don't think these are at all reliable as they are skewed by the inclusion of proprietary company directors (who would generally have incomes well ahead of the average PAYE employee taxpayer).
 
Re: .

The important thing to remember to remember though, is not income after tax........... but income after tax in relation to house prices.

Don't just look at income and think we're well off because we have high incomes in relation to other EU countries........ we also have extremely high house prices........ and interest rates which at some point will go up.

Maybe sooner than we think
 
.

I just heard on the radio that Ireland is one of the cheapest places in Europe to buy a home?

Strange, I guess mine "is not to reason why...."
 
Re: .

... we're well off because we have high incomes in relation to other EU countries........ we also have extremely high house prices
Click to expand...

Both these points are true. In fact, both high wages and high house prices feed off each other. House prices increase because people can afford them more. The more house prices increase, the more people look for higher pay.
 
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