How is my Pension Taxed?
All pensions are subject to Income Tax and Universal Social Charge (USC) deduction on the PAYE basis. You will, therefore, require a Revenue Payroll Notification (RPN), in respect of pension payments. This will be requested by CERS pension payroll department from Revenue when your Benefit is being processed through payroll. If we do not receive a valid RPN, your Benefit will be taxed on the Emergency Tax basis and you may need to contact Revenue directly.
To contact Revenue, please visit www.revenue.ie or by phone (01) 738 3636.
It may be of assistance to note that the Registered Employer’s Number of the Pension Scheme is 0065485S.
The Universal Social Charge is a tax payable on gross income from all sources if the total exceeds €13,000 per annum (not including Dept. of Social Protection Payments).
The Universal Social Charge individual deduction rates are issued on your tax credit certificate (RPN), by Revenue. If you have any query relating to the amount of USC deducted please contact Revenue directly to query or update your details.
The current standard rates (2023), of Universal Social Charge are:
- 0.5% on the first €12,012 per annum.
- 2% on the next €10,908 per annum.
- 4.5% on income above €27,080 per annum to a total of €70,044 per annum.
- 8% on all income above €70,044 per annum.
However, these standard rates are modified in certain circumstances.
- In the case of individuals aged 70 or over and individuals who hold full medical cards, 0.5% is payable on the first €12,012 and the 2% rate applies to the balance of all income over €12,012 per annum, (where their aggregate income does not exceed €60,000 per annum).
- Individuals in receipt of an Exclusion Order i.e. those that live outside of the State, in a country that has a double taxation agreement with Ireland.