Maternity Leave Pay / Taxation Query

StarBright01

Hi I'm out on maternity leave later this year. My company offers a "top up of 25% of the difference between gross pay and the qualifying benefit from PRSI for the statutory period of leave"

How does this work? Is the €230 a week (state maternity) extra to this or not? Surely given the top up is only 25%, the €230 is extra to this and its not payable to the company like in some cases.

Is the €230 taxable? I presume there will be very little tax paid on the top of up 25% of the difference..etc given the amount will be so small (could be just €395 a month before tax)

Any advice much appreciated as this is all new to me and trying to get my head around it!!!:)

Geuze

The 230 MB is taxable.

Geuze

You earn 1030 pw.

MB is 230 pw.

Difference is 800 pw.

The employer give you 25% or 200 pw, on top of the 230 MB pw.

Lucuma

Yeah you will receive 230 p/w from the state (via your company payroll) plus a top up of 25% of the difference between 230 p/w and your normal (before tax) weekly wage .
How much tax you pay depends on what tax band the overall salary for the year falls into

Lucuma

Yeah you will receive 230 p/w from the state (via your company payroll) plus a top up of 25% of the difference between 230 p/w and your normal (before tax) weekly wage .
How much tax you pay depends on what tax band the overall salary for the year falls into

StarBright01

Thanks guys, looking like the company top up is working out at less than €500 a month, hopefully won't have to pay much tax on that since the amount is so little and then the €230 per week will be taxable too. Better start saving!!