Maternity Leave Pay / Taxation Query

StarBright01 · 19-05-2016 11:53AM #1

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 · 19-05-2016 02:49PM

The 230 MB is taxable.

Geuze · 19-05-2016 02:50PM

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 · 19-05-2016 02:53PM

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 · 19-05-2016 02:54PM

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 · 19-05-2016 04:08PM

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!!

Maternity Leave Pay / Taxation Query

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