what rate of pension levy will i pay?

Click said:
Hi,

I just used the Excel calculator & it's giving me a figure well below what I already calculated based on 3% on first 15K, 6% on next 5K & 10% on the remainder?

Could the Revenue be wrong!!
Click to expand...


I think this calculator is for the 'old' pension calculations & not the new pension levy?
 
Click said:
I think this calculator is for the 'old' pension calculations & not the new pension levy?
Click to expand...

It's the net of tax position, so what you see should be the bottom line on your payslip, annualised. Divide it by 52.18 for the weekly figure and 26.09 for the fortnightly.
 
j26 said:
It's the net of tax position, so what you see should be the bottom line on your payslip, annualised. Divide it by 52.18 for the weekly figure and 26.09 for the fortnightly.
Click to expand...

Hi,

Many thanks for your reply. I'm still confused :-(

Lets take an example:

Gross 40K earned.

First: 15K at 3% = 450euro
Next: 5K at 6% = 300euro
Rest: 20K at 10% = 2000

Total = 2750euro


Excel calculator is coming out at 1665euro

I know I'm missing something but I don't know what?

I appreciate your patience with this
 


SORRY!!!

Clink! the penny has dropped.

It's the tax you end up not paying that makes the differance, a form of tax relief!!

You can see I have all the necessary skills to run any of the National Banks in Ireland
 
Existing arrangement
First €15,000 of earnings – 3%,
€15,000 to €20,000 of earnings – 6%,
Earnings over €20,000 – 10%.
New arrangement
First €15,000 of earnings exempt,
5% on next €5,000 of earnings,
10% on earnings between €20,000 and €60,000 and
10.5% on earnings above €60,000.

 
I'm totally confused about this levy.
Q1. If you don't earn the same amount every yr, therefore cannot use the 15k, next 5k step etc how can you calculate levy deduction? I have no contract and work a different amount of hours every week, and am paid fortnightly with salary pay calculated at an hourly rate. From past p60s my annual salary is around €16k, yet I have been deducted 3%, 6% & 10% all on same payslip..
Q2. What is this 5% deduction? My last payslip now has the 3%, 6% & 10% deduction being replaced by a 5%? deduction??
Q3. Would anyone be able to tell me how to do the maths...ie how to work out the deduction

Of course all of this is without going into the 'whys and wherefores' of the whole thing!

Thank you
 
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