Calculating net pay

jim_bob

If you start work and say you agree to work for x amount a year how do you calculate how much net pay you should take home a week. It’s just been bugging me cause I can’t make heads of tails of the tax suitition and holiday pay.

The way I understand is say you are offered 20,000 euro a year, to calculate the tax that you have to pay you do the following:

Tax 20,000 euro @ 20% euro = 4,000 euro
Less tax Credits = 1,520 euro

Tax Payable = 2,480euro

So then my yearly take home pay is 20,000 – 2,480= 17,520

Then do I divide this by 50 or 52, 50 meaning that by law you are entitled to 21 days off a year. So is my take home a week

a.) 17,520 / 50 = 350.4
b.) 17,520 / 52 = 336.9


and then how do I calculate my holiday pay

btw this is all based on a standard working week i.e. 39 hours on a single person’s tax rate

not sure if this is the right way or not just need to find out


Cheers

Victor

Originally posted by jim_bob
Then do I divide this by 50 or 52, 50 meaning that by law you are entitled to 21 days off a year. So is my take home a week

a.) 17,520 / 50 = 350.4
b.) 17,520 / 52 = 336.9

Ignoring exact bands and whatever, you divide by 52, not 50. As and when you take holidays you are enetitled too, you are still paid as if you showed up.

In practice 21 days off = 4 weeks + 1 day (you only work 5 days a week).

You also need to take into account the separate calculations for PRSI and Health Levy.