Pension contributions

Employer contributions to the following schemes and products on behalf of employees are not a benefit in kind (BIK) to employees.

Note

From 1 January 2025, there is an employer limit for contributions to an employee's PRSA or PEPP. This limit is 100% of the employee's salary. Any contributions above this limit will result in a BIK charge to the employee.

You should not deduct tax under Pay As You Earn (PAYE) or Pay Related Social Insurance (PRSI) from your employer contributions if the scheme is:

  • an OPS
  • a PRSA
  • or
  • a PEPP.

From 1 January 2016, Universal Social Charge (USC) is no longer payable on contributions you make to an employee's PRSA or PEPP.