Taxation of the Pandemic Unemployment Payment (PUP)

Process when PUP payments have ended

The adjusted tax credits and rate band apply only for the duration of the PUP. They will be readjusted to your normal entitlements on Week 1 basis after the Department of Social Protection (DSP) reports to Revenue that they are no longer making PUP payments to you. The processing of these reports from DSP are prioritised by Revenue.

Your responsibility if you return to work

It is important that you inform DSP immediately if you have returned to work. The information can be passed onto Revenue for processing. 

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

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

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