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Civil and public service pension contributions

Information

The Financial Emergency Measures in the Public Interest Act 2009 introduced a new level of pension contribution to be made by all public and civil servants.

Pension contributions are deducted from your gross income. Income tax, PRSI and other deductions, were assessed on the balance of your income after pension contributions had been deducted. However, in Budget 2011 it was announced that PRSI and the new Universal Social Charge are payable on gross income from 1 January 2011.

Pension contributions are graduated so that the effect is less at lower income levels and greater at higher levels.

From 1 March 2009, pension contributions were deducted at:

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

The Department of Finance estimated that the average deduction would be 7.5%.

Supplementary Budget April 2009, announced changes to the graduated scale of pension contributions. These changes reduced the impact of the deduction on lower paid civil and public servants.

From 1 May 2009, graduated pension contributions are:

  • First €15,000 of earnings is exempt
  • 5% on next €5,000 of earnings
  • 10% on earnings between €20,000 and €60,000
  • 10.5% on earnings above €60,000

Buying back service

The rate of pension contribution will have no effect on the rate at which you buy back service.

Additional Voluntary Contributions

The rate of pension contribution is separate to and has no effect on any arrangement you may already have to pay Additional Voluntary Contributions.

Getting a public service pension

If you are already getting a public service pension you will not pay a pension contribution.

Page updated: 22 February 2011

Language

Gaeilge

Related Documents

  • Supplementary Budget 2009
    A supplementary budget was announced on 7 April, 2009. Summary of the main changes.
  • Budget 2011
    Budget 2011 was announced on 7 December 2010. Summary of the main changes.
  • Budget 2013
    Budget 2013 was announced on 5 December 2012. Summary of the main changes.

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