Age-related limits
Under 3015%
30–3920%
40–4925%
50–5430%
55–5935%
60 or over40%
€115,000 earnings cap
The percentage is applied to relevant earnings, but no more than €115,000 of earnings can be taken into account for the employee contribution relief limit. Revenue's own example shows a 42-year-old earning €40,000 can obtain relief on up to €10,000 of annual contributions.
Income Tax, not every payroll charge
Employee pension relief can reduce Income Tax pay. It does not automatically reduce USC or PRSI in the same way, so the platform keeps the tax bases separate.
Multiple sources of income
Where a person has more than one income source, Revenue links the relief to the source in respect of which the pension contribution is made. Complex pension arrangements can therefore need more information than a single salary-and-percentage input.