Quick answer
- PAYE is the Income Tax line; USC, employee PRSI, pension and voluntary deductions should be checked separately.
- Start with taxable pay rather than assuming the contractual gross salary is the exact PAYE input for that payday.
- A bonus, overtime, benefit, reduced credit, changed band or non-cumulative basis can make PAYE rise suddenly.
- Reconcile the payslip with the current TCC and the employer submission visible in Revenue myAccount before deciding which record is wrong.
Estimate PAYE income tax
Use the PAYE Tax Calculator to check bands, credits, and estimated Irish income tax due.
On this page
Read an Irish payslip in this order
Gross pay, taxable pay and notional pay
| Payslip term | What it usually means | Why it matters for PAYE |
|---|---|---|
| Gross pay | Pay before deductions | Starting point, but not always the exact Income Tax base |
| Taxable pay | Pay subject to Income Tax after relevant adjustments | The closest figure for reconciling PAYE |
| Notional pay / BIK | Taxable value of a non-cash benefit | Can increase tax without increasing cash salary by the same amount |
| Year-to-date pay | Cumulative reported pay from 1 January | Central to cumulative PAYE calculations |
| Net pay | Cash after statutory and other deductions | Cannot be explained by PAYE alone |
Why has my PAYE increased?
| What changed | Likely PAYE effect | Where to verify it |
|---|---|---|
| Bonus, overtime or back pay | More pay may fall above the period cut-off point | Payslip earnings lines |
| Taxable benefit added | Taxable pay rises without matching cash pay | BIK/notional-pay line and employer |
| Credit or band reduced/reallocated | Less credit or 20% band is available to this job | Current TCC |
| Moved to Week 1 basis | Earlier unused credits/band no longer help this period | TCC and Revenue basis |
| Emergency basis applied | Normal credits are not used and higher deductions can apply | PPSN, employment registration and RPN |
| Prior underpayment collected | Future credits may be reduced | Statement of Liability and TCC |
Worked bonus example
Assume a single monthly-paid employee has a €3,666.67 monthly band and €333.33 monthly credits. With regular taxable pay of €3,500, gross tax is €700 and PAYE is about €366.67. If a €1,000 taxable bonus raises that month’s pay to €4,500, approximately €833.33 falls above the monthly band.
| Monthly position | Regular pay | Regular pay + €1,000 bonus |
|---|---|---|
| Taxable pay | €3,500.00 | €4,500.00 |
| Gross Income Tax | €700.00 | About €1,066.66 |
| Tax credits | €333.33 | €333.33 |
| PAYE | About €366.67 | About €733.33 |
This simplified period example explains why the extra €1,000 does not necessarily produce a €200 PAYE increase. Cumulative payroll may produce a different result using the actual year-to-date record.
Payslip reconciliation workflow
- Compare this payslip with the previous one. Mark every changed earning, benefit and deduction.
- Check taxable pay and basis. Do not start with net pay or the annual salary alone.
- Download the current TCC. Compare credits and cut-off points with what the payslip displays.
- View the employer’s Revenue submission. Revenue says statutory pay-and-tax details are available in myAccount after updating overnight.
- Send pay-input errors to payroll and Revenue-record issues to Revenue. This avoids asking the wrong party to change a value it does not control.
- Use calculators as a sense-check. Match the calculator assumptions before comparing the numbers.
Frequently asked questions
What does PAYE mean on my payslip?
It is the Income Tax deducted through payroll for that payday. USC and PRSI are separate statutory lines.
Why has my PAYE increased?
Common reasons are a bonus or overtime, higher taxable pay, a taxable benefit, reduced credits or band, a new tax basis or collection of an earlier underpayment.
Why is PAYE different every month?
Variable pay, cumulative year-to-date calculations, updated Revenue records, benefits and rounding can make deductions change even when the annual salary is unchanged.
Why does my payslip not match the PAYE calculator?
Payroll uses the exact TCC/RPN, pay date, taxable benefits, year-to-date record and rounding. A calculator uses the assumptions entered and is a planning estimate.
Should I enter gross pay or taxable pay in a calculator?
Use annual gross salary for planning. When checking one payslip, compare the taxable-pay line and then reproduce any pension, benefit, credit and band assumptions available in the calculator.
Does a bonus get taxed at 40% in Ireland?
The portion above the available period or cumulative standard-rate band is taxed at 40%. A bonus is not automatically subject to one special PAYE rate.
Can my employer change my tax credits?
No. The employer follows the RPN from Revenue. Payroll can correct pay inputs, but Revenue controls the credits, cut-off points and basis supplied through the RPN.
Where can I see what my employer reported to Revenue?
In myAccount, use PAYE Services to manage/view the employment and open its payroll submissions. Revenue says the information is updated overnight.
Sources & references
Related calculators
Use these tools for the numbers behind this guide.