Tax, PRSI and pensions when changing job

When you switch jobs there are important things you should be aware of relating to your tax, social insurance contributions (PRSI) and pension (if you have one).

Leaving your job

When you leave your job, your employer will enter your leaving date and details about your final pay and deductions into Revenue’s online system.

You can then see your pay and income tax details for your old job through the ‘Manage your tax’ link in myAccount.

You won’t receive a P45 from your employer when you leave.

Starting your new job

When you start your new job, your new employer will inform Revenue of your start date. This creates a new employment record for you and lets your new employer access updated tax credits and tax rate bands for you.

Revenue will send a Revenue payroll notification (RPN) to your new employer. The RPN will tell your employer how much income tax and universal Social Charge (USC) to deduct from your pay.

If you are starting your first job in Ireland, you must register it in the jobs and pensions section of Revenue’s online service myAccount.

You can find more information about how to do this in our page about online services for PAYE taxpayers.

You may be taxed temporarily called emergency tax if you are changing jobs if your new employer does not get your RPN.

You gave your employer your PPS number

You get a tax cut-off point for the first month, based on the single-person tax cut-off point for the year.

Your income is taxed at the standard rate (20%) until week 4 and at the higher rate (40%) from week 5 on.

You didn’t give your employer your PPS number

You are taxed at the higher rate (40%) with no tax credits until you give your employer your PPS number.

You can check Revenue’s current emergency tax and USC rates (pdf).

To avoid emergency tax you should:

1. Give your employer your PPSN
2. Register for Pay As You Earn (PAYE) in myAccount

Most employers and employees - between the ages of 16 and 66, or between 66 and 70 and not in receipt of the State Pension (Contributory) - pay social insurance (PRSI) contributions to the National Social Insurance Fund. PRSI helps pay for social welfare benefits and pensions.

You must give your new employer your Personal Public Service number (PPS number). This will make sure your combined social welfare contributions are recorded and protect your entitlement to benefits and pensions in the future. You can find more information about social insurance (PRSI).

You only need to register your first job or private pension with the Jobs and Pensions section of Revenue’s myAccount.

If you change job, you no longer need to register your new job or pension – see more below.

Occupational pensions

If you have an occupational pension you can either keep your benefits within the scheme (known as a preserved benefit) or transfer the benefits to another scheme.

A preserved benefit means that you get a pension when you reach the scheme's normal retirement age.

When you leave your pension scheme, you must get a Leaving Service Options letter within 2 months, outlining your benefit options.

Can I get a refund of pension contributions?

If you have less than 2 years' contributions, you can get a refund of your own contributions. This refund will be taxed, because you got tax relief when you made the contribution.

Before leaving your job, talk to the person responsible for administering the pension scheme, as each scheme has its own rules.

Personal Retirement Savings Accounts (PRSA)

If you have a PRSA you can stop or start it without charges by contacting your PRSA provider. PRSA’s are flexible investment accounts allowing you to change job while keeping the same PRSA.

For more details see the Pension Authority’s booklet, PRSAs – a consumer and employer's guide (pdf).

You only need to register your first job or private pension with the Jobs and Pensions section of Revenue’s myAccount.

If you change job, you no longer need to register your new job or pension.

All you need to do is give your employer your PPSN. Your employer is responsible for registering second and subsequent jobs. Your employer can register your job by either requesting a Revenue Payroll Notification (RPN) or by making a payroll submission.

When Revenue gets this information they will send a Tax Credit Certificate (TCC) to you and your new employer or pension provider. This ensures the correct amount of tax is deducted from your job or private pension.

Tax

For more information and support, see the Revenue myAccount help guides.

If you are unable to use online services, you can contact your tax office for help.

You can read more about tax and changing jobs on the Revenue website.

Pensions

Occupational pensions and PRSAs are regulated by the Pensions Authority. You can get an overview of the pension arrangements available and the options that might suit your situation in the free booklet What are my Pension Options?' (pdf)

If you have queries about your pension, contact the Pensions Authority's Information Unit. The Pensions Authority does not deal with the State pension. Contact the Department of Social Protection if you have any questions about your state pension, old age pension, contributory or non-contributory pension.