Gross vs Net Pay

Gross pay is your total salary before any deductions — the headline figure on a job offer or in your contract. Net pay (also called take-home pay) is what hits your bank account after Revenue and your employer have deducted PAYE income tax, USC, PRSI, pension contributions, and any other authorised withholdings.

For a typical PAYE employee, the deductions stack up like this:

• PAYE (income tax): 20% on income up to the standard rate cut-off, 40% above. Reduced by tax credits.
• USC: progressive bands from 0.5% to 8%, charged on gross pay without pension relief.
• PRSI: ~4.1% on most weekly earnings for Class A workers.
• Pension: typically 5–10% if enrolled in an occupational scheme or AVC. Pension is income-tax deductible but USC and PRSI are charged on the gross amount.
• Other: BIK (e.g., company car), health insurance, share scheme contributions.

A useful mental shortcut: a higher-rate taxpayer keeps roughly 51 cents on the marginal euro — 40% PAYE + 8% USC + 4.1% PRSI ≈ 52.1% deducted. AVCs reduce only the PAYE part of that, so the cash net cost of contributing €100 is around €60 for a higher-rate taxpayer.

Use the take-home pay calculator for an all-in net pay figure given your salary, tax credits, and pension contribution.