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Gross Bonus
€5,000
Net Cash
€2,620
Tax
€2,230
Effective Rate
45.0%
Budget 2026 estimate
Client-side estimate
Enter your base salary and bonus to estimate the net cash impact, tax allocation, and a pension contribution scenario based on Revenue-style limits.
Required: base salary and bonus amount. You can refine the estimate using tax status and pension settings.
Gross annual salary before bonus.
Gross bonus amount paid through payroll.
Used for pension relief limits.
Your employee contribution rate.
If you have RSUs vesting in the same year, consider reviewing the Total Compensation view to see combined marginal-rate impacts.
Required: base salary and bonus amount. You can refine the estimate using tax status and pension settings.
Gross annual salary before bonus.
Gross bonus amount paid through payroll.
Used for pension relief limits.
Your employee contribution rate.
If you have RSUs vesting in the same year, consider reviewing the Total Compensation view to see combined marginal-rate impacts.
Net cash in hand
€2,620
Pension from bonus
€150
Estimated tax
€2,230
Effective rate
45.0%
Estimate based on annual totals. Payroll withholding can differ due to timing and payroll setup.
Net bonus in pocket
Recommended mix€2,620
Effective tax rate
45.0%
Pension from bonus (total)
€150
Estimated tax
€2,230
Set the percentage of your bonus to sacrifice directly into your pension via AVC (Additional Voluntary Contribution). Each euro contributed saves tax at your marginal rate.
Salary sacrifice
€0
Net cash in hand
€2,620
Pension from bonus
€150
Tax saved vs cash
€0
Recommended balanced mix: 48% AVC. Your current setting is -48pp below balanced.
January receipt keeps this bonus in the next tax year, avoiding USC band issues.
See how pension sacrifice compounds over time. Adjust growth assumptions below.
Year 1 net cash
€2,750
Year 5 net cash
€3,343
Pension pot (yr 5)
€0
Pension advantage
+-€15,195
| Year | Gross Bonus | Net Cash | Pension Contribution | Cumulative Cash | Pension Pot Value |
|---|---|---|---|---|---|
| 1 | €5,000 | €2,750 | €0 | €2,750 | €0 |
| 2 | €5,250 | €2,888 | €0 | €5,638 | €0 |
| 3 | €5,513 | €3,032 | €0 | €8,669 | €0 |
| 4 | €5,788 | €3,183 | €0 | €11,853 | €0 |
| 5 | €6,078 | €3,343 | €0 | €15,195 | €0 |
Projections are estimates, not guarantees. Bonus growth and investment returns are assumed and may vary. Pension growth is pre-tax and subject to future tax treatment at withdrawal.
Compare multiple bonus amounts or sacrifice strategies side by side.
What-If scenarios use local estimates and are for comparison purposes only. Actual tax outcomes depend on payroll timing and employer-specific rules.
Your estimated annual bonus pension: €150. Compare providers below.
We may receive a commission if you click through to a provider. This is not financial advice or a recommendation. Always research providers and consider seeking professional advice.
Your bonus is taxed at an effective rate of 45%. By sacrificing 48% of your €€5,000 bonus to pension, you could save approximately €€1,080 in tax this year.
Quick estimate based on your inputs and standard Irish payroll rules. Updates automatically.
| Scenario | Cash in hand | Pension | Tax |
|---|---|---|---|
| Item | Change |
|---|---|
| Gross bonus | €5,000 |
| Cash in pocket (estimate) | €2,620 |
| Net pay reduction (estimate) | €0 |
| PAYE | €1,870 |
| PRSI | €210 |
| USC | €150 |
| Total tax (estimate) | €2,230 |
| Salary sacrifice to pension | €0 |
| Regular employee pension on cash portion | €150 |
| Pension from bonus (total) | €150 |
| Net pay change | €2,620 |
Sign-on bonuses often have clawback clauses. Toggle this on to see the repayment schedule.
Compare your bonus to industry data from Irish salary surveys.
Typical range
€8,000 – €20,000
Median
€12,000
Your bonus
€5,000
Gap to median
-€7,000
Benchmark data is based on published Irish salary surveys and may not reflect current market conditions. Actual bonuses vary by company size, performance, and individual factors.
When do Irish companies pay bonuses? Set a reminder so you’re ready to plan your tax strategy.
Most tech companies and some financial services pay annual bonuses in Q1.
Banking and professional services bonus season.
Some companies use half-year reviews for performance-based bonuses.
December bonuses can trigger USC surcharges. Consider January timing.
These answers are for information only. This calculator provides estimates and is not an official Revenue calculation.
Yes — a bonus is treated as employment income and may be subject to PAYE, USC and PRSI. Your effective rate depends on your year-to-date pay, tax credits, and payroll calculations.
It is the estimated total tax change caused by the bonus divided by the gross bonus amount. It can differ from headline marginal rates based on where you sit in the bands for the year.
Many schemes support additional contributions. PAYE relief may apply within age-related limits and the earnings cap. USC and PRSI treatment can vary by payroll arrangement.
Some payroll setups still apply USC and PRSI to the gross bonus while also increasing pension deductions. That can reduce the cash paid in the bonus month.
A December bonus can push you into the USC 8% band for the entire year. Delaying to January may keep you in a lower USC bracket, saving hundreds in tax.
The most common strategy is diverting part or all of your bonus into your pension via a bonus sacrifice arrangement. This reduces your taxable income for PAYE purposes. USC and PRSI treatment depends on your payroll setup — check with your employer if pension sacrifice is available for bonus payments.
Yes — if your payroll withholds more PAYE, USC, or PRSI than necessary (e.g., due to Week 1 basis), you can claim a refund through Revenue's myAccount service once the tax year ends.
A large bonus can push cumulative income over the €70,044 USC 8% threshold. Once breached, all remaining pay that year is subject to 8% USC. A January bonus resets the bands while a December bonus keeps you in a lower bracket for most of the year.
No — a bonus is taxed as standard employment income under the same PAYE, USC, and PRSI rules. There is no separate bonus tax rate in Ireland. However, a bonus can push you into a higher USC band or the 40% PAYE bracket.
For most people, a balanced mix of cash and pension is optimal. Taking all cash loses 48%-52% to tax. A pension sacrifice diverts pre-tax money to retirement, saving tax at your marginal rate. The tool recommends a balanced split based on your salary, age, and limits.
Yes — bonuses are subject to PRSI (Class A) at 4% of the gross bonus. If your total earnings exceed the PRSI ceiling (~€72,000), you may not pay PRSI on the bonus portion above that threshold.
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Rule-of-thumb: in higher-rate scenarios, a cash bonus can face combined PAYE, USC, and PRSI deductions of around 48%–52%, depending on your year-to-date pay, credits, USC band, and PRSI class.
The tool compares an estimated baseline (salary only) with a combined scenario (salary + bonus). It then reports the differences as "cash in hand", "pension", and "tax" for each scenario. Results are illustrative and are not official Revenue calculations.
A cash bonus is taxed using the same PAYE bands as your regular pay. In many cases, the portion of the bonus above the standard rate cut-off point is taxed at 40% PAYE. Beyond PAYE, bonuses can also attract USC (up to 8%) and PRSI (about 4.2% for many employees).
It estimates remaining relievable pension capacity using age-related limits and the earnings cap (€115,000). The balanced option targets a 50/50 split of gross bonus between pension and cash.
Payroll is cumulative and can be affected by credits, other income, USC exemptions, and scheme-specific handling of deductions. Use this tool as an estimate and confirm with your payroll provider where relevant.
These estimates are based on standard Irish payroll rules for 2026. Your actual tax depends on your full financial circumstances, tax credits, and employer's payroll setup. Consult a qualified tax advisor for personalised advice. Results are illustrative and do not constitute financial advice.