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Car allowance or salary

  • 25-02-2021 8:27am
    #1
    thegills
    Registered Users, Registered Users 2 Posts: 1,802 ✭✭✭


    Which is better. Getting a car allowance or having your salary increased by an equivalent amount?


Comments

  • #2
    Allinall
    Registered Users, Registered Users 2 Posts: 6,824 ✭✭✭Allinall


    thegills wrote: »
    Which is better. Getting a car allowance or having your salary increased by an equivalent amount?

    A general car allowance is taxable the same as salary, so no difference.

    One thing to be aware of though:
    If there is a pension policy in place where the employer contributes a certain percentage, the car allowance won't be counted, so all else being equal it would be best to take it as salary.

    Having said that, it depends on the employer. Some may have a salary cap on certain positions, and are using the car allowance to get round that.


  • #3
    thegills
    Registered Users, Registered Users 2 Posts: 1,802 ✭✭✭thegills


    Thanks Allinall. Makes sense.


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