Calculating your Income Tax
What are gross pay and taxable pay?
Gross pay is the employee’s pay of any kind, including:
- notional pay
- share based remuneration
- the employees pay before any pension contributions or salary sacrifice deductions are made.
Chapter 3 of the Employers Guide to PAYE details the different types of pay that would be included.
Taxable pay is your gross pay less any contributions you make to a:
- Revenue approved pension scheme
- Revenue approved Permanent Health Benefit (Income Continuance) scheme
- Salary Sacrifice Arrangement
- Personal Retirement Savings Account (PRSA)
- Retirement Annuity Contract (RAC).
These amounts are deducted from your gross pay before your employer calculates your tax.
Next: What are tax credits?