what rate of pension levy will i pay?

M

mer

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HI

Im very confused, my salary is 44,100K so i'm not sure which levy i'll pay as they seem to go up in scales of 5 grand.
Has anyone any idea?

Thanks
 
The Dept of Finance have released the exact calculations on the 4th page of this document (opens in PDF). It will be:

3% on the first €15,000
6% on the next €5,000
10% on the balance.

In your case it will be €3,160.
 
Is the levy before or after tax?

Is it x% straight off the gross, as with other levies?

Some Ministers are suggesting that it is tax deductible?

Example: 10% levy straight off gross

OR

10% levy meaning less than 6% after tax and PRSI

?????
 
Mer: you will be paying approximately 7.2%.

Protocol: the levy will be gross of tax. I think the way it will work is as follows:

Salary: €44,100
Less Pension Levy: (€3,175.20)
TAXABLE SALARY: €40,924.80

Tax @ 20%: €7,280
Tax @ 41%: €1,855.17
Income Levy: €441
Total Tax Due: €9,576.17

Less Tax Credits:
PAYE €1,830
Single Person €1,830
Tax Payable: €5,916.17

So, your monthly tax will be approx. €493 and your monthly levys (pension @ 265 and income @ 37) will be €300.
 
Last edited:
Dermot Ahearn stated on prime Time that it was tax relievable.So the nett
decrease will be less.
 
A couple of questions:
1. Can a public sector employee opt out of the pension scheme.
2. If so will they be hit with the pensions levy.
3. Can they opt back in later on in life.
4. Is it now still viable to remain in the scheme:
Eg salary of 40,000 = total pension contribution of 6% (current deduction) and 7.2% new deduction. Assuming no salary increases and no pension value increases for simplicity sake would a deduction of around 5280 per year now be worth it to buy a pension of 20,000 in 20 years time?
 
1. I am 99% sure that participation in the public sector pension scheme is a mandatory condition of employment.
4. The purpose of the pension levy is to correct the disjoin between what we contribute (approx. 6%) and what we will eventually receive (which is dictated by whatever the pay conditions for public servant are whenever you retire).
 
1. Is the pension mandatory for non-permanent staff who are on limited contracts but still contributing to the pension?
 
I would imagine it will be taken from permanent and contract holders who currently pay into a pension alike. I assume it will apply only to pensionable pay -ie in those parts of the PS where acting up grades are not pensionable the level can hardly apply on the acting allowance.
 
I was forwarded an xls sheet with a pension calculator, but alas I don not know how to upload an xls file from my Pc to here.

I work out for Mer, that you will have €37 a week less take home pay, which will be €41 a week less when the parking levy kicks in.

And to sfag, you have to pay, your also contributing towards the spouses and children fund, even if you never marry or have kids yourself.

Also, an item needing clarification, I'm currently paying 4.5%, the opinion where I work is that I will now pay 4.5% + 7.1% = 11.6% pension contribution thats how I came up with €37 a week worse for Mer, if it means going from 4.5% to 7.1% that figure is €17 a week worse off... Can any one say if it is + your current or instead of your current %
 
Should someone on contract be forced to continue contributing to a pension, since their job is not secure, or will they be allowed to opt out?
 
Galwaygirl said:
I would imagine it will be taken from permanent and contract holders who currently pay into a pension alike. I assume it will apply only to pensionable pay -ie in those parts of the PS where acting up grades are not pensionable the level can hardly apply on the acting allowance.
Click to expand...

Acting allowances in the HSE are pensionable for years so this new levy will apply.

Payment to the pension scheme is complusary except in some cases - one being if you work less than 20% of the working week.

You can't opt out of the scheme.
 
gezza said:
Should someone on contract be forced to continue contributing to a pension, since their job is not secure, or will they be allowed to opt out?
Click to expand...

I know I worked 8 yrs ago with public body, when I left I was able to claim back pension contributions, I dont know if this can still be done, and I was only working for 4 months.
 
Hi,

I just used the Excel calculator & it's giving me a figure well below what I already calculated based on 3% on first 15K, 6% on next 5K & 10% on the remainder?

Could the Revenue be wrong!!
 
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