Phone: ( 058 ) 86009 · info@moore.ie

Employees

Employees fall into three different categories:

  • private sector, not included in an employer’s occupational pension scheme for retirement benefits
  • private sector, included in an employer’s occupational pension scheme for retirement benefits
  • public sector, included in a public service superannuation scheme.

Employees will pay income tax under PAYE on their Schedule E remuneration.

If you are employed full-time, part-time, or even participating in a job share, you may take advantage of a pension.

Private sector – not included in employer scheme

In this case the employer must provide all employees with access to at least one pension to which they can contribute by net pay deduction from salary. But the employer is not obliged to contribute to an employee’s pension.

  • the employer has a scheme, but the employer has decided not to include the employee in question in the scheme.
    In this case the employer must provide all such employees with access to at least one Standard PRSA to which they can contribute by net pay deduction from salary.
  • the employer has a scheme providing retirement benefits, but the employee is not included in the scheme at this stage because he or she doesn’t meet the eligibility conditions.
    In this case the employer must provide all such employees with access to at least one Standard PRSA to which they can contribute by net pay deduction from salary, if the employee has to wait more than 6 months to join the scheme.
  • the employer has a scheme providing retirement benefits, but the employee chose not to join when offered an opportunity.
    The employer is not required by law to provide such an employee with access to a Standard PRSA but if the employer has a PRSA scheme anyway, which is likely, then such an employee could contribute to it.

Private sector – included in employer scheme

Where an employee is included in their employer’s occupational pension scheme for retirement benefits, their earnings from such employment are not relevant earnings, and hence they cannot contribute to a Pension or get tax relief for such a contribution in respect of these earnings. That option is not therefore available to them.

However, such employees may be able to top up their employer scheme benefits with AVCs, paid to an occupational pension scheme or PRSA.

Public service employees

Virtually all public service employees are included in a public service unfunded occupational pension scheme.

The benefits provided can differ significantly by the date of entry into service, and the sector of the public service the employee works in.

We work with individuals, families, businesses, farms and charities