Pension contributions

Employer contributions to an approved occupational pension scheme (OPS) on behalf of employees are a not a benefit in kind in their hands. Contributions to an employee’s Personal Retirement Savings Account (PRSA) are a benefit in kind.

However, the benefit is taxable only where the aggregate of employer’s and employee’s PRSA contributions exceed the employee’s age-related limit.

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 either an OPS or a PRSA.

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