Changing job: tax, PRSI and pension

Introduction

If you are changing your job, (that is, leaving your current job and starting a new one), there are things you need to know about for your tax, social insurance contributions (PRSI) and for your pension.

Statement of tax

As part of the PAYE modernisation process, if you leave your job after 31 December 2018, you will not get a P45 certificate from your employer. Instead, your employer will enter your leaving date and details of your final pay and deductions into Revenue’s online system. You will then be able to log into Revenue’s myAccount service and view your pay and tax details for your old job.

When you start your new job, your new employer will notify Revenue of your start date. This will create a new employment record for you and let your new employer access up-to-date tax credits and tax rate bands for you.

If you are starting your first job in Ireland, you must register it in the jobs and pensions section of Revenue’s online service myAccount. You can find more information about how to do this in our document on online services for PAYE taxpayers.

Emergency tax

If your new employer does not get your Revenue Payroll Notification (RPN), they will have to emergency tax your income. (An RPN replaces the current P2C and is available in real-time to employers.)

In most cases your new employer will get your RPN. However, they will not receive it if:

  • You don’t give them your Personal Public Service Number
  • You are not registered for Pay As You Earn (PAYE). (You will automatically be registered for PAYE when you register a job or pension using the Jobs and Pensions service in myAccount).

If your employer does not get this information they must deduct tax on an emergency basis when paying your wages or salary. This means that they will give you a temporary tax credit for the first month of employment but tax deductions are increased progressively from the second month onwards. Being taxed on an emergency basis means that after 4 weeks, no tax credits are given and tax is paid at the higher rate from week 9, regardless of the level of pay. You can find examples of how emergency tax is calculated on the Revenue website. Details of emergency tax rates are on the Revenue website.

More information can be found in our document about tax and starting work .

Social insurance (PRSI)

Most employers and employees (over 16 years of age) pay social insurance contributions into the national Social Insurance Fund. Social insurance contributions entitle you to a range of benefits that are administered by the Department of Employment Affairs and Social Protection. It is important to inform your new employer of your Personal Public Service Number (PPS number) as this will ensure that your combined social welfare contributions are recorded and that your entitlement to benefits is protected for the future. You can find more information in our document about social insurance (PRSI).

Changing jobs and pensions

You can register your new job or private pension with the jobs and pensions section of Revenue’s MyAccount. When Revenue receives this information they will send a Tax Credit Certificate (TCC) to you and your new employer or pension provider. This will ensure that the correct amount of tax is deducted from your job or private pension.

Occupational pensions: If you have an occupational pension your benefits from the pension scheme may be preserved within the scheme or transferred to another scheme. Legislation requires that when a member leaves a scheme that they must be provided with a Leaving Service Options letter within 2 months of their exit from the scheme. This letter should detail any options relating to the members’ benefits. A preserved benefit means that you get a pension when you reach the scheme's normal retirement age.

If you have less than 2 years' contributions to the scheme, you can get a refund of your own contributions (but not any contributions made by your employer). This refund will be taxed, as you received tax relief when you made the contribution. Before you leave your employment, you should talk to the person in the company who has responsibilty for administering the pension scheme, as each scheme has its own rules.

Personal Retirement Savings Accounts (PRSA): If you have a PRSA you can stop or start it when you choose, without charges, by contacting your PRSA provider. Your PRSA is a contract between you and a PRSA provider in the form of an investment account. PRSAs allow you to change employment and continue to use the same PRSA.

For further information, see the Pension Authority’s booklet, PRSAs – a consumer and employer's guide (pdf).

How to apply

You can view your pay, tax, employment and pension details on Revenue’s MyAccount. You can register for MyAccount on revenue.ie.

Occupational pensions and PRSAs are regulated by the Pensions Authority. Its free booklet What are my Pension Options?' (pdf) provides you with an overview of the pension arrangements available. In addition, this booklet sets out the options suitable in various circumstances and requirements.

If you have any queries in connection with a pension, contact the Pensions Authority's Information Unit.

Where to apply

Pensions Authority

Verschoyle House
28-30 Lower Mount Street
Dublin 2
Ireland

Tel: +353 (0)1 613 1900
Locall: 1890 656 565
Fax: +353 (0)1 631 8602
Page edited: 8 January 2019