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A warm up for the paycuts for Public Servants

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  • 15-01-2010 4:17pm
    #1
    gerry28
    Closed Accounts Posts: 438 ✭✭


    To all public servants waiting for the budget 2010 paycuts to kick in on their next paychecks - your pension levy will be going up too.

    I just got my paycheck and my pension levy has gone up by 38%. Aparrently this is because the levy in 09 was from calculated from march to dec.

    My paycut isn't being applied until the next payrun.... so i have that to look forward to in a fortnight.

    Have any other PS workers noticed this in their payslips.


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    #2
    Euro_Kraut
    Closed Accounts Posts: 1,957 ✭✭✭Euro_Kraut


    I don't understand, the overall amount we pay into the pension levy over the year will increase (as there are 3 extra months to pay) but the contribution from each individual paypacket should remain the same.


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    #3
    gerry28
    Closed Accounts Posts: 438 ✭✭gerry28


    I really hope it is a mistake from the payroll dept. They claim it will be going up for everybody.

    I'd be interested to hear from anyone who recieved their payslips today?


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    #4
    The.Q
    Registered Users Posts: 54 ✭✭The.Q


    gerry28 wrote: »
    To all public servants waiting for the budget 2010 paycuts to kick in on their next paychecks - your pension levy will be going up too.

    I just got my paycheck and my pension levy has gone up38%. Aparrently this is because the levy in 09 was from calculated from march to dec.

    My paycut isn't being applied until the next payrun.... so i have that to look forward to in a fortnight.

    Have any other PS workers noticed this in their payslips.

    Just checked my payslip and my pension levy has increased slightly (€6.38 over the fortnight) but that's probably correct as I'm taking 8 weeks off on the Shorter Working Year scheme, but took 10 weeks term-time last year.

    I'd advise you to get in touch with your salaries section ASAP.


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    #5
    Riskymove
    Registered Users Posts: 10,888 ✭✭✭✭Riskymove


    Euro_Kraut wrote: »
    I don't understand, the overall amount we pay into the pension levy over the year will increase (as there are 3 extra months to pay) but the contribution from each individual paypacket should remain the same.

    actually given that we are taking a pay cut to core pay the levy should actually decrease


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    #6
    alphanumeric
    Closed Accounts Posts: 61 ✭✭alphanumeric


    Hi Gerry, My PRD has dropped to 97 from 107. Levy has dropped from 35 to 32 and my NHASS, S+C Tax and PRSI are all down due to drop in take home. Not as much as much of a drop as I expected. About 40 per FN all in all.


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    #7
    chocgirl
    Closed Accounts Posts: 697 ✭✭✭chocgirl


    My pension levy remained the same? I got paid yesterday!


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    #8
    gerry28
    Closed Accounts Posts: 438 ✭✭gerry28


    chocgirl wrote: »
    My pension levy remained the same? I got paid yesterday!


    There must be an issue with mine then, i'll try and get to the bottom of it on monday.


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    #9
    chocgirl
    Closed Accounts Posts: 697 ✭✭✭chocgirl


    gerry28 wrote: »
    There must be an issue with mine then, i'll try and get to the bottom of it on monday.

    Well I really hope it's yours, not mine:), don't see how it could go up!


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    #10
    namenotavailablE
    Registered Users Posts: 59,625 ✭✭✭✭namenotavailablE


    The PS pension levy would have been higher this year, unfortunately, except for the effect of the gross pay cuts.

    This is because last year, it was introduced with effect from 1 March but we had the 'benefit' of the exempt amount for the full year [€15000] allocated over the 10 months we paid the levy.
    Therefore, we basically were exempt from €1500 per month in 2009 but in 2010 this will reduce to €1250 per month [€15000/12].

    Check my net pay calculator at taxcalc.eu/monthlyss to see what your revised net will be in 2010.

    Free Excel net pay calculator- https://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm



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    #11
    lmimmfn
    Registered Users Posts: 3,553 ✭✭✭lmimmfn


    theres the usual 2% pay increase coming in May, i wouldnt panic


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    #12
    johnnyrotten
    Registered Users Posts: 3,593 ✭✭✭johnnyrotten


    lmimmfn wrote: »
    theres the usual 2% pay increase coming in May, i wouldnt panic

    What are you talking about?


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    #13
    highgiant1985
    Registered Users Posts: 1,777 ✭✭✭highgiant1985


    johnnyrotten wrote: »
    What are you talking about?

    id guess hes referring to increments?


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    #14
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,431 Mod ✭✭✭✭Gumbo


    Riskymove wrote: »
    actually given that we are taking a pay cut to core pay the levy should actually decrease

    my pension levy has increased!
    not on any tern time or extended breaks or unpaid leave etc

    PRD has increased by 6e per forthnight, dont know why tbh.
    lmimmfn wrote: »
    theres the usual 2% pay increase coming in May, i wouldnt panic

    i aint getting no increase in May........where did you hear this? or are you making it up? got no increase last May either?


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    #15
    ixoy
    Moderators, Entertainment Moderators Posts: 17,993 Mod ✭✭✭✭ixoy


    kceire wrote: »
    i aint getting no increase in May........where did you hear this? or are you making it up? got no increase last May either?
    Some people are due increments, although I'm not sure why May was mentioned - is it not tied to when you started?
    It's those on the lowest end of the scales who will benefit the most - I know someone who just started whose cut will be wiped out within a year. Others could take 4-5 or never see it.


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    #16
    doncarlos
    Registered Users Posts: 2,838 ✭✭✭doncarlos


    I just got my incriment on the 1st of January (same time as pay cut). I'm down €300 a year on last years wages. So in reality the budget has just delayed things for a year instead of addressing the real problems with the public sector.


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    #17
    Johnboymac
    Closed Accounts Posts: 20 ✭Johnboymac


    just to try to clear things up a bit~~
    The pension-related deduction (pension levy) currently has four rates which apply since 1 May 2009 as follows: First 15000 - exempt; Next 5000 - 5%; Next 40000 - 10%; Over 60000 - 10.5%. Between 1 March and 1 May different rates applied: First 15000 - 3%, next 5000 - 6% and remainder - 10%.

    It was agreed that the full year banding should be applied in 2009 although the pension levy only applied for 10 months. Therefore in 2010 the application of this banding will result in a higher PRD being deducted with effect from 1 January.

    Sample (ignoring other factors)
    2009 - Earnings of €60,000 pa => €50,000 for 10* months => PRD of €3,341 (Fortnightly = €151)
    2010 - Earnings of €60,000 pa => PRD of €4,250 (Fortnightly = €163)

    * 2 at original rates/bands and 8 at revised rates/bands.

    This is as the legislation provided.

    Essentially Finance is confirming that the pension deduction made in 2009 was based on the amount of earnings for the10 month period but using the bands as they would have applied for a full 12 month year. This in effect meant a reduced deduction as members’ earnings for pension levy purposes were 8 weeks short of a full years earnings. If the bands had been adjusted to reflect their application over 10 months rather than 12 the amount per week would have been higher than it was. Consequently as the deductions will apply for a full 12 months earnings in 2010 the weekly deduction will be higher than it was last year.


    Hope this helps


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