USC and pension contributions

Pension contributions reduce income tax but not USC or PRSI.

When you pay into a pension through payroll, the payment comes off your pay before income tax. So you get relief at your marginal rate (the rate on your next euro). USC and PRSI are still charged on your full pay, including the part you pay in.

Work it out

• What paying more into your pension really costs →

Terms: Pension tax relief · Universal Social Charge (USC)

All payslip topics · General information, not tax advice.