Congratulations; you have officially settled down in your job in Ireland and have made it to your first payday! And that means receiving your first payslip. This is a written note your employer will provide that shows your total pay and the deducted tax and insurance.
So how do you understand your Irish payslip? What should you expect to see on your payslip? And how do you know if there is a mistake? Below we cover everything you should know about understanding your first Irish payslip.
How to read an Irish payslip
You should expect to receive your payslip in either paper or electronic format (such as a password-protected pdf in an email attachment). It will generally include the following information:
- Gross pay: This is your total pay before taxes and any other payroll deductions
- Total deductions: This will be the total deducted from your gross pay and may include tax (including PAYE and PRSI) or any agreed subtractions such as pension contributions
- Net pay: This might be better known as your take-home pay and is your total earnings after taxes and any other payroll deductions.
- Cumulative pay: This is a summary of what you have been paid in total for the year so far
- Your personal information such as your name and PPSN
- Your employer’s details including their name and tax registration number
- Your tax and PRSI details (we’ll go into further detail about this further down)
How are payslips calculated in Ireland?
How your payslip is calculated usually depends on if you are paid weekly, fortnightly or monthly. To calculate your pay, your annual pay figure will usually be divided by 52.18 (weekly), 26.09 (fortnightly), or 12 (monthly).
If you are paid by the hour, wages are usually calculated by multiplying the number of hours worked by your agreed hourly wage.
How can I understand deductions in my pay?
One of the more difficult parts of trying to understand your Irish payslip is figuring out what the deductions in your pay are for and what they mean! In particular, tax deductions like PAYE, PRSI and USC can even leave those working in Ireland for years pretty confused.
We have outlined what you should know about the tax deductions you’re likely to see on your payslip below:
- PRSI stands for ‘Pay Related Social Insurance’ and is a payment made by both you and your employer. It is the main source of funding for social welfare payments.
- PAYE stands for ‘Pay as You Earn’ and is an income tax deducted by your employer. PAYE ensures that the amount of tax you pay is collected evenly throughout the year.
- USC stands for ‘Universal Social Charge’ and is a tax you pay if you earn over €13,000 a year. Depending on your particular circumstances you may pay this at a standard or reduced rate.
If your employer provides you with a uniform this may also be deducted from your pay, you might also see deductions for any losses that you have caused such as breakages or till shortages. If you see deductions in your payslip that you don’t recognise or understand, make sure to speak with your employer.
How to know if there is a mistake on your payslip
If you suspect any mistakes or problems with your payslip, it’s recommended to speak directly with your employer first. If the mistake is not something that they can handle, they will be able to point you in the right direction to get the issue resolved. Depending on the specific problem, you may have to contact the Revenue office.
Who do I talk to about payslip problems?
If you have questions about your payslip, it’s important to speak directly to those who deal with payroll in your company. As mentioned above, if it is a problem that is out of their control, you may need to contact Revenue to find out more.
Why do you need a payslip in Ireland?
In Ireland, you have a right to a payslip on every payday – either on the day you are paid or shortly after. It is an important document to have to keep you aware of your pay, what you are paying in taxes and any other deductions. It is also useful for situations such as applying to rent an apartment or home or when making a claim with the Revenue office. In summary, make sure to keep your payslips safe, you might need them in the future!
At MoneyJar, we have built a simple new approach to a digital account. This means that things that can sometimes be complicated when first settling into a new country such as setting up a bank account and getting paid by your new employer can all be made a lot more simple with three simple steps.
- Download the Money Jar app
- Register your personal details
- Verify your identity using a standard form of identification
All you will need to set up an account with us is government-approved identification and a postal address to receive your prepaid Mastercard.
We provide plenty of ways to help you stay on top of your spending and make the process of setting up an account easy. Find out more about how we can help you have the freedom to be better with money and everything else you need to know about our digital account here.
