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Civil Servant - 4 day week - tax implications...?

  • 20-06-2014 08:11AM
    #1
    Dinarius
    Registered Users, Registered Users 2 Posts: 3,437 ✭✭✭


    My wife is a civil servant - Assistant Principal, highest scale - and is considering switching to a four day week.

    We are wondering what the tax implications would be.

    Would she take home 80% of what she is currently taking home? Less? More?

    Anything else she should be considering with a move to a four day week?

    Many thanks.

    D.


Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,262 ✭✭✭✭Geuze


    Her gross will be 80% of previous gross.

    But her net will not, due to the progressive nature of our income tax system.

    Her net will be greater than 80% of previous net.


  • #3
    Dinarius
    Registered Users, Registered Users 2 Posts: 3,437 ✭✭✭Dinarius


    Geuze,

    Many thanks. That's positive. :)

    Given the limited opportunities for promotion - she should have been a Principal Officer ages ago - she is very tempted.

    She will probably wait until the next P.O. interview. If she doesn't get it, then that will decide the issue.

    D.


  • #4
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,686 ✭✭✭barneystinson


    Dinarius wrote: »
    Geuze,

    Many thanks. That's positive. :)

    Given the limited opportunities for promotion - she should have been a Principal Officer ages ago - she is very tempted.

    She will probably wait until the next P.O. interview. If she doesn't get it, then that will decide the issue.

    D.

    Are we a tad bit biased, saying she should've been a PO ages ago...! :p

    Seriously though, while she will lose 20% of her gross, assuming she's in the union and income continuance, her marginal rate of deduction including everything, would be about 65%, so while her gross may go down by 15-16k her net pay will fall by about 4.5-5.5k.


  • #5
    Dinarius
    Registered Users, Registered Users 2 Posts: 3,437 ✭✭✭Dinarius


    Barney,

    Taking home circa €5k less would be manageable - just about.

    Of course I'm biased! ;) She's been a close second twice in PO interviews. But, in the current climate, there are fewer opportunities.

    Thanks again.

    D.


  • #6
    sillysocks
    Registered Users, Registered Users 2 Posts: 2,651 ✭✭✭sillysocks


    I wasn't in Civil Service but moved to a four day week in my last job. Don't have the exact figures but I definitely wasn't down the full 20%.
    If you google tax calculator ireland there's a few good ones there and you could put in her current gross first and then her 80% gross to get a rough idea.


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  • #7
    namenotavailablE
    Registered Users, Registered Users 2 Posts: 59,748 ✭✭✭✭namenotavailablE


    Check my Excel spreadsheet [see my signature below for website or the about me section of 'My profile'] which handles Public Sector as well as Private Sector.

    There's also a tax calculation thread stickied at the top of the tax forum which might be helpful.

    Free Excel net pay calculator- https://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm



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