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Taxation of the Pandemic Unemployment Payment (PUP)

  1. Overview
  2. Taxation of PUP received in 2020
  3. Taxation of PUP received in 2021 and 2022
  4. Process when PUP payments have ended

Process when PUP payments have ended

The adjusted tax credits and rate band applied only for the duration of the PUP. Your normal entitlements were readjusted to Week 1 basis after the Department of Social Protection (DSP) reported to Revenue that you were no longer receiving PUP payments. Revenue prioritised the processing of the reports from the DSP. 

You can find information about how to Close your pandemic unemployment payment application on the DSP website.

  • Example

    Sam receives the PUP of €350 per week.

    Revenue calculates the annualised amount:

    Notional annual amount
    DescriptionCalculationAmount

    Weekly amount

    350 x 1

    €350

    Annualised amount

    350 x 52

    €18,200

    This reduces Sam’s tax credits by €3,640 per year (€70 per week).

    If Sam had claimed Jobseeker’s Benefit at €203 per week, his tax credits would be reduced by €2,111 per year or €40.60 per week. (Jobseeker’s Benefit is taxed on the same basis and would be annualised at €10,556).

The video below provides practical information for employees returning to employment who were in receipt of PUP in 2021. It outlines what you needed to do to cease PUP payments when you resumed, or took up, regular employment. It also provides examples on how your PUP was taxed in 2021 and the associated changes to your credits and rate bands. 

Note

The same procedure applies to 2022.

Revenue’s PUP return to work protocols, April 2021.

Published: 12 February 2024 Print this page

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