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Public sector pay slip pension calculation

  • 01-08-2017 3:33pm
    #1
    josephsoap
    Registered Users, Registered Users 2 Posts: 657 ✭✭✭


    Can anyone advise how the public sector pension is calculated weekly. (Post 1995)

    Is it 6% of gross pay? I know the w+o/s + c, and lump sum are listed as individual deductions by some employers. Is the same percentage rate across the board i.e. HSE staff, Gardai, civil service.

    Presume an PS has a gross wage of €500 per week (assuming no PRD liability) how is the pension amount due arrived at ?

    I can calculate PAYE/USC/PRSI liability just not the pension amount :-)

    Many thanks.


Comments

  • #2
    Squatter
    Closed Accounts Posts: 1,841 ✭✭✭Squatter


    josephsoap wrote: »

    Is the same percentage rate across the board i.e. HSE staff, Gardai, civil service.


    The Single Public Service Pension Scheme (“Single Scheme”) commenced with effect from 1 January 2013.

    It applies in the Civil Service, Local Authorities, Education Sector, Health Sector, to GardaDefence Forces, Prison Officers, Firefighters, the Regulatory Sector, and all non-commercial semi-state bodies.

    But you refer to a post-1995 pension which suggests that you're not in the single scheme.

    If you tell us what area of the PS you're in, then it should be possible to advise you what the deduction rate is.

    josephsoap wrote: »

    Presume an PS has a gross wage of €500 per week (assuming no PRD liability) how is the pension amount due arrived at ?

    Answer: (assuming that the pension rate is 6%.)

    Gross Pay: €500 (annual salary = €26,000 ---> you're paying tax at 20%)

    6% of €500 is €30. However, as you pay tax at 20% and there is PAYE relief on pension contributions, your pension deduction will be reduced by 20%, so instead of being €30, it will be €24, i.e. 80% of €30. (The formula is: €500*0.06*0.8 = €24)

    (And if you were on the higher rate of PAYE (40%), then you would pay only 60% of the €30, i.e. €18. (the formula is €500*0.06*0.6 = €18.)


  • #3
    Geuze
    Registered Users, Registered Users 2 Posts: 14,024 ✭✭✭✭Geuze


    The headline rate is 6.5% contribution.

    However, it's actually a bit more complex than that.

    5% is for the main scheme.

    1.5% is for the Spouses and Childrens scheme, S&C.


  • #4
    Geuze
    Registered Users, Registered Users 2 Posts: 14,024 ✭✭✭✭Geuze


    How it actually works out is as follows, for a post April 1995 employee:

    Main scheme

    Pension - 3.5% of net pensionable salary
    Lump-sum - 1.5% of gross

    S&C
    1.5% of gross


    Net pensionable salary = salary less 2x CSP, Contributory State Pension


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