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Pension Related Deduction Changes

Changes to the PRD threshold for the year 2015 are currently being implemented by Payroll. The impact of changes to PRD thresholds will result in refunds being generated to payees. Payroll Shared Services Centre payrolls envisage processing refunds for December pay-dates.

The changes being implemented will see the PRD exemption thresholds increasing from €15,000 to €17,500 backdated to 1/1/2015. The amount of refund due is calculated as follows;

€17,500 less €15,000 = €2,500 * 2.5% = €62.50 gross

The figure of €62.50 is a gross amount which in most cases will see a net refund of;

€50 for those on a 20% rate of tax

€37.50 for those on a 40% rate of tax

The refund may not be apparent on the payslip as it will be shown as a reduction of PRD in that particular week.