Your first Irish payslip will have deductions you have never seen before. PAYE, USC, PRSI — three separate systems taking money from your wages simultaneously. Understanding what each one is, whether the amounts are correct, and whether you are on the right tax basis from the start saves you real money.
Pay As You Earn. The main income tax in Ireland. Charged at 20% on income up to €42,000 (single person) and 40% on everything above that. Your €3,750 in annual tax credits reduces the amount you owe — so you only pay tax after those credits are used.
A separate charge on gross income. 0.5% on the first €12,012, 2% on the next €14,372, 4% on the next €19,372, and 8% above €70,044. If you earn under €13,000/year, you pay no USC. USC is separate from income tax and cannot be reduced by tax credits.
Pay Related Social Insurance. Most employees pay Class A: 4% on all earnings above €352/week. PRSI contributions entitle you to unemployment benefit, maternity benefit and eventually State Pension. You cannot get these back as a refund — they are contributions.
Every PAYE worker gets at least two credits: Personal Tax Credit (€1,875) and PAYE Credit (€1,875) — totalling €3,750/year. These reduce your tax bill directly. If your employer does not have your correct tax credit certificate from Revenue, you will be on emergency tax.
Emergency tax applies when your employer cannot confirm your tax details with Revenue — usually because you have not yet registered your employment, or because your PPS Number is missing or not linked to your employer. Under emergency tax:
Most issues in a first Irish job are not caused by fraud — they are caused by not knowing the system. Revenue does not proactively fix your tax position or tell you when you are owed money. The responsibility is yours.
If your employer is not registered with Revenue under your PPS Number, you pay emergency tax. Many workers stay on emergency tax for months before realising it.
If you started mid-year, you may have unused tax credits from the months you were not employed. These can be reclaimed — but only if you file.
If you also drive for a delivery platform or do any other work outside your main job, that income must be declared separately. Mixing income sources without proper filing is a Revenue compliance issue.
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Talk to us on WhatsAppCheck your payslip. If you see '40% rate' or 'Week 1 basis' and you have not provided your PPS Number to your employer, you are on emergency tax. Your take-home pay will be significantly lower than it should be.
Register the employment in Revenue's MyAccount and ensure your Tax Credit Certificate is issued to your employer. Revenue then instructs your employer to apply the correct credits and rate. The process takes a few days.
Yes — but it does not happen automatically. Once you are on the correct tax basis, you can file a year-end review through Revenue's myAccount and claim the refund. The timeline is usually weeks, not months.
Possibly. Your tax credits are allocated across the full year. If you were only employed for part of the year, the unused portion of your credits may entitle you to a refund of tax already paid.
Delivery income is self-employment income regardless of whether it is your main income. You must register as a sole trader with Revenue and include this income in an annual Form 11.
First, verify your tax credit certificate is correctly issued. Second, check whether you are on a cumulative or Week 1 basis. Third, confirm your employer has the correct PPS Number on file. These are the three most common causes of unexpected deductions.
