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Worksheet: State Pension (Non-Contributory) and income from work


This worksheet will help you find out how work will affect your weekly State Pension (Non-Contributory) in 2010. 

Worksheet

State Pension (Non-Contributory) Worksheet                             Euro

Income from your job                                                                  
(See note 1)                                                                              

Add income from your spouse or partner's job                        
(See note 2)

Total                                                                                            ____________

Divide by 2 to get:

Total assessable weekly means from employment                   

(See note 3)

Weekly State Pension (Non-Contributory)                                 

(See note 4)


Gross Income                                                                                    
(Add income from job and new rate of State Pension (Non-Contributory)
to get total Gross Income)                                                              _____________

Deductions

Less total PRSI paid each week  (including health levy)                                                        

(See note 5)

Less weekly tax paid                                                                           

You pay income tax (PAYE) on all your income

(earnings + State Pension (Non-Contributory)).

(See note 6)

Total Net Income                                                                                       ____________

 

Note 1

€200 of income from insurable employment is not taken into account.  Any amount above this is assessed as means.  All income from self-employment is assessed as means.

Note 2

If a qualified adult is working, €200 of income from insurable employment is not taken into account.  Any amount above this is assessed as means.  All income from self-employment is assessed as means.

Note 3

If you are married or are cohabiting with another person as husband and wife, your means will be taken as half the joint means of you and your spouse or partner.

Note 4

If means are less than €30 you can get a reduced pension. Find out the rate of pension paid after means are assessed.

Note 5

You pay PRSI on your job income only, not on your State Pension (Non-Contributory).

If your spouse or partner is earning less than €352 per week they will not pay any PRSI.  (If their salary is over €352 they will pay 4% on any earnings over €127 per week).

Note 6

Multiply total Gross Income by 20% to get the gross amount of income tax payable each week. From this figure subtract your Weekly Tax Credit to get the amount of Weekly Tax paid.

Single Person = €76.63

Married Couple (one person working and one person over 65) = €111.83

Married Couple (one person working and both over 65) = €118.08

Married couple (both working and one person over 65) =  €147.02

Married couple (both working and both over 65) = €153.27

Income levy

You must pay the income levy if you don't have a medical card, or you are over 65 with an annual gross income not more than €20,000 for a single individual or €40,000 for a married couple. Your State Pension (Non-Contributory) is not included in gross income for the income levy. Find out more about the income levy.

Weekly Tax Credit 2010

Single person 

Personal Tax Credit                   €1,830

Age Credit                                   €325

PAYE/Employee Tax Credit         €1,830

Total Tax Credit                         €3,985

Divide by 52 to give the weekly tax credit of €76.63.

 

Married couple (one person working and one person over 65)

Personal Tax Credit                   €3,660

Age Credit                                   €325

PAYE/Employee Tax Credit         €1,830

Total Tax Credit                         €5,815

Divide by 52 to give the weekly tax credit of €111.83.

 

Married couple (one person working and both over 65)

Personal Tax Credit                     €3,660

Age Credit                                     €650

PAYE/Employee Tax Credit           €1,830

Total Tax Credit                          €6,140

Divide by 52 to give the weekly tax credit of €118.08.

 

Married couple (both working and one person over 65)

Personal Tax Credit                      €3,660

Age Credit                                      €325

PAYE/Employee Tax Credit             €1,830

PAYE/Employee Tax Credit             €1,830

Total Tax Credit                            €7,645

Divide by 52 to give the weekly tax credit of €147.02.

 

Married couple (both working and both over 65)

Personal Tax Credit                        €3,660

Age Credit                                       €650

PAYE/Employee Tax Credit             €1,830

PAYE/Employee Tax Credit             €1,830

Total Tax Credit                             €7,970

Divide by 52 to give the weekly tax credit of €153.27.


Other Tax Free Allowances

You may be able to claim Mortgage Interest Relief, union subscriptions and/or health insurance premiums.

If you are a tenant in privately-owned accommodation, you may be able to claim an extra tax relief for rent paid


Last Updated: 15/01/2010

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If you have a question relating to this topic you can contact the Citizens Information Phone Service on lo-call 1890 777 121 (Monday to Friday, 9am to 9pm)

 

 

Disclaimer: This document contains general information which may not address your particular circumstances; you may need more detailed information and/or legal advice.