Public Service Gratuity to be taxed at 17%?

podge3

Has anyone else heard that the Public Service Gratuity is to be taxed at 17%?

I have heard from several "informed" people that this is one of the measures in the forth-coming budget.

oscarBravo

The what now?

gandalf

Whats this?

gaz wac

We're ment to tip them

podge3

Civil and Public Servants get a tax-free lump sum when they retire - usually 1.5 times their salary.

Rumour has it that its no longer going to be tax-free.

jdivision

About time

LoLth

possibly not..

taxing it now would only discourage public sector workers form accepting the idea of early retirement.

Saying "we're going to tax it in 3 years and by the way, we're offering early retirement over the next two" would quite quickly cull any who were "thinking about possibly retiring soon" and cut the PS wage bill.

no argument from me over whether it should be taxed or not.

White dargo

podge3 wrote: »

Has anyone else heard that the Public Service Gratuity is to be taxed at 17%?

I have heard from several "informed" people that this is one of the measures in the forth-coming budget.

Have heard it's happening. Figure I heard was 20%.

molloyjh

Makes sense alright. It's just a shame that it takes a recession of this magnitude for things like this to happen.

jimmmy

LoLth wrote: »

taxing it now would only discourage public sector workers form accepting the idea of early retirement.

I do not think it should be taxed ....it should be withdrawn altogether.
Why should the taxpayer give it to them and not themselves ? Its bad enough paying the pensions.

Gumbo

but isint it a revenue law that allows employees to receive 1.5xfinal salary as a tax free lump sum at retirement?

this would mean that it will hit private sector employees too iirc

Gumbo

jimmmy wrote: »

I do not think it should be taxed ....it should be withdrawn altogether.
Why should the taxpayer give it to them and not themselves ? Its bad enough paying the pensions.

who pays your state pension?
dont forget that the pension PS workers get includes the state pension that you, me and everybody else gets even if they sit on the ass for the whole of their lives and contribute nothing to the tax or PRSI system.

meditraitor

FFS is there nothing those civil servants dont get.......... Free Pension, secure jobs, big tax free lump when they leave,travel expenses,more holidays than private worker, cheap drink (army), any amount of sick days, options on years off for travel, over time to beat the band and **** all to do when they do turn up.............



I really wish I had have applied for a job in the civil service when I left school ;-(

joolsveer

The gratuity is part of the pension that public servants get. I heard that the full pension used be equal to 75% of pay and was reduced to 50% of pay when the gratuity became payable.

meditraitor

joolsveer wrote: »

The gratuity is part of the pension that public servants get. I heard that the full pension used be equal to 75% of pay and was reduced to 50% of pay when the gratuity became payable.

Lucky bastards, at least 300,000 people in Ireland have no worrys for the future then.

podge3

Not again .

I did not want to start another ill-informed debate on Public/Civil Service pay and conditions.

Can a mod please lock this thread? - some posters are making fools of themselves again.

jonsnow

podge3 wrote: »

Not again .

I did not want to start another ill-informed debate on Public/Civil Service pay and conditions.

Can a mod please lock this thread? - some posters are making fools of themselves again.

just be cause some people have a different opinion to you doesnt mean that there a fool.I,m sure you think that the public service work hard and deserve everthing they get.I dont think your a fool for having that opinion but I do disagree.some common courtesy please

oscarBravo

I'm not going to lock the thread (yet) but I am going to ask people to stay on-topic.

Mr. Presentable

meditraitor wrote: »

FFS is there nothing those civil servants dont get.......... Free Pension, secure jobs, big tax free lump when they leave,travel expenses,more holidays than private worker, cheap drink (army), any amount of sick days, options on years off for travel, over time to beat the band and **** all to do when they do turn up.............



I really wish I had have applied for a job in the civil service when I left school ;-(

You, sir, are extremely ill-informed. I suggest you acquaint yourself with the truth before approaching your keyboard.

OP, there is a rumour, but can they tax what has been previously deducted elsewhere?

ixoy

podge3 wrote: »

Not again .

I did not want to start another ill-informed debate on Public/Civil Service pay and conditions.

I'm curious as to what's ill informed here? Is it the ommission bit (i.e. to get the 50% you'd need 40 years of service unless you're a Guard) or something else?

podge3

nipplenuts wrote: »

OP, there is a rumour, but can they tax what has been previously deducted elsewhere?

I can't see that stopping them. They could probably dress it up as a levy....

podge3

oscarBravo wrote: »

... but I am going to ask people to stay on-topic.

Thanks

oscarBravo

We obviously have different understandings of "on-topic".

ongarite

I know of 2 people who have just taken early retirement from gardai & public service because of the rumour and fear that this is coming in.
Just the threat of it possibly coming has been enough for some people to jump.

As said before its been rumoured for years but this time it sounds like its a real possibility.

podge3

ongarite wrote: »

I know of 2 people who have just taken early retirement from gardai & public service because of the rumour and fear that this is coming in.
Just the threat of it possibly coming has been enough for some people to jump.

As said before its been rumoured for years but this time it sounds like its a real possibility.

I know several people who have done likewise.

This would cause a huge clearout of numbers - just what the Government want.

kceire

kceire wrote: »

but isint it a revenue law that allows employees to receive 1.5xfinal salary as a tax free lump sum at retirement?

this would mean that it will hit private sector employees too iirc

Private sector maximum tax free lump sum is 25% of pension fund amount and the residual pension is just that, a residual pension smaller than what it would have been
A gratuity is 3/80ths * years of service * salary and entirely tax free and does not affect the remaining pension

Gumbo

meditraitor wrote: »

FFS is there nothing those civil servants dont get.......... Free Pension, secure jobs, big tax free lump when they leave,travel expenses,more holidays than private worker, cheap drink (army), any amount of sick days, options on years off for travel, over time to beat the band and **** all to do when they do turn up.............



I really wish I had have applied for a job in the civil service when I left school ;-(

meditraitor wrote: »

Lucky bastards, at least 300,000 people in Ireland have no worrys for the future then.

you really need to research what comes out of your mind and into your posts. :rolleyes:

bluewolf wrote: »

Private sector maximum tax free lump sum is 25% of pension fund amount and the residual pension is just that, a residual pension smaller than what it would have been
A gratuity is 3/80ths * years of service * salary and entirely tax free and does not affect the remaining pension

what about the banking chiefs that got 1.5 times their salary? they are private sector too.
i was talking to a guy the other day that works for ipf, and he said that everybody is allowed earn a lump sum of 1.5 times their salary as a lump sum on the day they retire totaly tax free.

my apolagies if im wrong, i was just quoting what he told me.

BroomBurner

Have only heard rumours myself. So long as "gratuities" in the banks are highly taxed also (while we are still majority share-holders), then that's ok.

If it causes early retirement, then good, clear a few people out and then reopen competitions for promotion.

Then all of you private sector workers that are now unemployed can apply through open compeition, like the rest of us did, and try to get in! Problem solved.

dresden8

BroomBurner wrote: »

Then all of you private sector workers that are now unemployed can apply through open compeition, like the rest of us did, and try to get in! Problem solved.

But then they'll be public servants who hate public servants and it will automatically turn them into lazy b@st@rds who are responsible for the destruction of the country.

What a conundrum!

kceire

kceire wrote: »

what about the banking chiefs that got 1.5 times their salary? they are private sector too.

Yes well in fairness I think banking chiefs are on another plane of existence to us mere mortals ;s

i was talking to a guy the other day that works for ipf, and he said that everybody is allowed earn a lump sum of 1.5 times their salary as a lump sum on the day they retire totaly tax free.

3/80ths * 40 years service * salary is 1.5x salary

I don't know about particular places, I'm just saying in general as public service

NewDubliner

BroomBurner wrote: »

If it causes early retirement, then good, clear a few people out and then reopen competitions for promotion.

The idea is to reduce public service numbers through natural wastage. So, there won't be any more people hired.

Those staying on will have no promotional prospects, regardless of how hard they work, no increments, no overtime to cope with the work of departed colleagues, a pay cut, maybe another pay cut next year and also more taxes.

Oh, and the minister wants you to move to some town you never heard of. (Decentralisation - it hasn't gone away you know...).