Your payslip
Is there a pay-rise tax trap?
In almost all cases a rise leaves you better off. The exceptions are a few cliff edges.
Income tax and USC are charged in bands, so only the part of a rise above a band is taxed at the higher rate. You keep part of every extra euro. But a few rules do have edges:
- Reduced USC. With a full medical card, or if you're 70 or over, you pay reduced USC rates. They stop completely once your income passes €60,000. A small rise over that line costs more in USC than it adds.
- PRSI on low pay. Between €352 and €424 a week, the PRSI credit gets smaller as pay goes up. So each extra euro in that range pays more PRSI than the usual rate.
- Payments that depend on income. Working Family Payment and some other supports go down as your income goes up.
Work it out
Terms: Universal Social Charge (USC) · PRSI Class A
All payslip topics · General information, not tax advice.