Does employer pension contribution count towards our tax relief cap?

T

theObserver

Registered User
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101
Hi,

In my age bracket I can receive tax relief up to 25% of my salary paid into my pension.

Currently, I'm paying 5% and my employer is matching at 5% (the max they will go).

My question is: does my employers contribution count towards my 25% limit for tax relief?

ie if i increase the amount i pay from 5% to 25%, am I now over the limit for tax relief because of my employers 5% contribution?
 
After a lot of digging around the answer is "it depends":

Contributions paid by employers to occupational pension schemes are not treated as a benefit-in-kind and can be paid in addition to the contribution limits for employee contributions.

Contributions paid by employers to PRSAs are treated as a benefit-in-kind but income tax relief is provided subject to the overall contribution limits for employee contributions. Employer contributions to PRSAs are not subject to PRSI or the Universal Social Charge (USC).
Click to expand...
www.pensionsauthority.ie

Tax relief on employer contributions

Employers get tax relief on any contributions they make to a pension arrangement...
www.pensionsauthority.ie

I have an occupational pension so my employers contributations are not counted towards the 25% salary limit for tax relief.

Posting this here in case it helps someone else.
 
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