Worth accepting Payrise!

lea26

Hi

Just wondering if anybody can shed some light on this

i have managed to negotiate a payrise from 12.82euro per hour to 14.00euro per hour - i work a 39 hour week.

at the moment i take home 445.80 (after tax) - single person , no dependants.

anyway, i was talking briefly to somebody and they seem to think i might be worse off after tax if i take payrise. anybody have a rough idea what my take home pay would be if i accept it???

Thanks very much for any help

PS cant get in touch with agency i work for to ask them as payroll officer is on Holidays and am anxious to find out

jarvis_c82

Hi,

You will be roughly 25 euro better off depending on receiving the standard tax credit and PAYE tax credit.

lea26

Thanks for that

Wont complain bout an extra 25 in my pocket every week!!!:D

anonanon

Hi, Health Levy will kick in once your earnings are over €500..This means your take home pay will be €457.66

Salary 546.00
less
Income levy (10.92) 546 * 2%
Tax (38.82) (546 * 20%) - Tax credits(3660 / 52)
Prsi (16.76) (546 - 127) * 4%
Health Levy (21.84) 546 * 4%
_______
457.66

lea26

Oh - thats not good !!!!!!!!!

May have to go back and do a bit more negotiating!!!!!

I took on 2 peoples full time jobs when they took redundancy and have been doing my own work also - for the past 15 months!!!!! FOR AN EXTRA TENNER :rolleyes:

maddogcollins

Ya, it only works out as an extra €617 a year. I know its not to be sniffed at but when you describe your circumstances you could get more.

lea26

True - i know its not a great time for getting payrise and i am grateful - But i know for a fact the pay for the roles i took over were 28,000 per year and 33,000 per year

i have saved the company approx 60,000 in one year alone and they think a tenner is suffice ! Getting more worked up the more i think of it

namenotavailablE

You can check out various net pay amounts using my spreadsheet- download it at http://taxcalc.eu/monthlyss

As a previous poster noted, once you go over €26000 pa you get hit badly for the Health levy. You could consider paying into a pension fund to avoid paying the Health levy- it creates an asset for you (long term asset however) and avoids the loss caused by the levy. Alternatively, if your circumstances allow, you could try availing of something like the 'cycle to work' scheme or travel saver scheme, both of which reduce your gross pay but save you tax and levies on the ticket price. It's a cost effective way of getting to work.

marc1

In general you will never be worse off accepting a pay rise! Extra taxes will only be charged on the extra earnings - which means less of every additional euro will end up in you back account, but they are still additional.

2 comments here:

1) You said you took on other people's jobs, but you are still working the same amount of hours? If you get paid by the hour then you are not really saving the company money so that argument will not get you very far! (Unless you increased your productivity dramatically, in which case I would be wondering why you were not more productive in the first place :-) )

2) You might be able to negotiate a better deal on every hour you work over the 39 hours - to cover the extra work you have taken on. (shouldn't be a problem as you are single and no dependents :-)) Take the 14 and ask for double pay on any additional hour you work! Cut out 30 minutes from lunch and stay an additional 30 minutes in the evening / get in 30 minutes early in the morning and you will get an extra 5 * 14 * 2 = 140 gross a week. (That's about 7800 a year)

namenotavailablE

In general you will never be worse off accepting a pay rise!

This isn't entirely correct - due to the bizarre rules for the Health Levy.

For example, a single person with standard tax credits earning €26000 gross pa would net €23164 in 2010.
If they earned €27000 in 2010, they would net €22824 ie €340 LESS pa than previous despite receiving a pay rise of €1000. This is all due to having to pay the Health Levy once you earn over €26,000. At a salary of €26000 pa or less, you avoid having to pay the Health Contribution. Once you go €1 over €26000 you have to pay it on ALL of your earnings.

In order to 'get ahead' from what they were netting on €26,000, they'd need to earn more than €27,485.

Source: My calculator at http://taxcalc.eu/monthlyss

This assumes that they are paid their salary in an even amount each week- it is possible to minimise the effects of the Health Levy by taking a lower salary for 51 weeks of the year (and thereby avoid paying the Health Levy) and getting a big Xmas bonus to make up the difference, paying the levy only on the single week's salary+bonus payment.

lea26

[QUOTE

This assumes that they are paid their salary in an even amount each week- it is possible to minimise the effects of the Health Levy by taking a lower salary for 51 weeks of the year (and thereby avoid paying the Health Levy) and getting a big Xmas bonus to make up the difference, paying the levy only on the single week's salary+bonus payment.[/QUOTE]

Thanks for all your replies

i am liking the above suggestion!

Marc1 - i think i have saved them money as they no longer pay the other people the equivilant of 60grand ...... also there is strictly no overtime allowed - i already work through all my breaks every day (unpaid) to get my work done... i should at least get some kinda "Employee of the Year" award

Oh and "single and no dependants" doesnt mean i dont have a life

lea26

Does anybody know if i set up a savings account with An Post ( State Savings.ie) would this be the same as paying into a pension...... as in would i avoid the health levy this way??????

Thanks again