What's the difference between PAYE, USC and PRSI?

PAYE is income tax: 20% up to your cut-off point and 40% above, less your tax credits. USC is a separate charge on pay before tax in bands from 0.5% to 8%. PRSI is social insurance, 4.2% of pay before tax (4.35% from 1 October 2026) once you earn over €352 a week.

Why does my tax change from one payslip to the next?

On the cumulative basis, each payslip settles the tax due on all your pay so far this year. If your pay varies, or your credits changed, the tax on one payslip can go up or down to catch up.

My payslip shows 40% tax and 8% USC on everything. Why?

That's emergency tax: your employer has no Revenue Payroll Notification for you. Give them your PPSN and register the job in myAccount; the overpayment comes back once they get it.

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Your payslip, explained

Every deduction on one payslip worked out line by line, and a check against what your payslip actually shows.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

What's the difference between PAYE, USC and PRSI?: PAYE is income tax: 20% up to your cut-off point and 40% above, less your tax credits. USC is a separate charge on pay before tax in bands from 0.5% to 8%. PRSI is social insurance, 4.2% of pay before tax (4.35% from 1 October 2026) once you earn over €352 a week.
Why does my tax change from one payslip to the next?: On the cumulative basis, each payslip settles the tax due on all your pay so far this year. If your pay varies, or your credits changed, the tax on one payslip can go up or down to catch up.
My payslip shows 40% tax and 8% USC on everything. Why?: That's emergency tax: your employer has no Revenue Payroll Notification for you. Give them your PPSN and register the job in myAccount; the overpayment comes back once they get it.

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