Example of how tax-relief on pensions work

Example of how tax relief on pensions work if you are an employee and is deducted from your weekly or monthly salary.

For every €100 you contribute, your take-home pay will be reduced by €60 if you pay tax at 40% and by €80 if you pay tax at 20%.  €100 is still invested into your pension plan.

This means that should you contribute €300 a month, your take-home pay will only go down by €180 if you pay tax at 40% and by €240 if you pay tax at 20%. But €300 will still be invested into your pension plan.

Any queries on same give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie