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Earning money and understanding taxes

Working in Ireland

Starting work in Ireland involves a few important steps. You need to apply for a PPS number for tax and employment purposes, register your job with Revenue to make sure the correct tax is deducted and understand your payslip, including gross pay (your pay before anything is taken off), deductions (the money taken for tax, PRSI, USC or other charges), and net pay (the amount you actually receive after deductions).

The process also requires certain documents like proof of identity and address, and it’s important to open a bank account so your wages can be paid directly. Helpful tips are included below to make these steps easier and avoid issues like emergency tax (temporary higher tax you pay until Revenue has your correct details).

How to start your first job in Ireland

Starting your first job can feel overwhelming, but following these steps will help you get set up correctly.

  • Get a PPS number: A PPS number is an Irish Personal Public Service Number issued by the government and required for employment.
  • Register your job with Revenue: Use the online myAccount service to register your new employment so your employer deducts the correct tax.
  • Understand your contract: Read the terms and conditions carefully, including pay, hours, probation and notice periods.
  • Know your rights: Employees in Ireland are entitled to minimum wage, holiday pay and protection under employment law.
  • Set up a bank account: Your employer will pay your wages directly into your account.

Step 1: Get a PPS number

Before you can start work, you need a PPS number. This is used by Revenue when you register your first job. If you were born in Ireland, you will typically have been given a PPS number if your birth was registered within three months. If you were not born in Ireland or do not have a PPS number, you can apply for a PPS number through your local Social Welfare office or online through MyWelfare.ie. To apply you will need:

  • Proof of identity (passport, national ID card)
  • Proof of address (utility bill, government letter)

For more information on applying for a PPS number go to Citizens Information.

Step 2: Register your job with Revenue

Once employed, you will need to log into Revenue’s myAccount service to register your new job. This ensures your employer deducts the correct tax and you avoid paying emergency tax. You will need the following information to register your new job:

Top tip

You only need to register your first job with Revenue. Any subsequent jobs will be registered by your employer.

Step 3: Understand your payslip

Your payslip will show:

  • Gross pay – this is how much you are paid before your tax, PRSI and USC are deducted
  • Net pay – this is how much you are paid after your tax, PRSI and USC are deducted
  • Tax, PRSI, and USC contributions – this will show how much tax, PRSI and USC has been deducted
  • Any pension contributions or other deductions

If you have any queries on your payslip, you should contact your Human Resources team. 

Understanding the tax system in Ireland

Income tax in Ireland is charged at two rates:

  • 20% (standard rate) on income up to a certain threshold
  • 40% (higher rate) on income above that threshold

Most employees in Ireland pay tax through the PAYE (Pay As You Earn) system. With this system, your employer deducts tax directly from your wages and pays it to Revenue.ie

Example

Éilis works as an office manager at company XYZ and earns €50,000 before tax in 2025. Éilis' income tax is calculated as follows:

€44,000 @ 20% = €8,800
€6,000 @ 40% =  €2,400
Total income tax = €11,200

You will also pay:

  • PRSI (Pay Related Social Insurance) – contributions that entitle you to social welfare benefits.
  • Universal Social Charge (USC) – a tax on income above certain thresholds.

What are tax credits?

Tax credits reduce the amount of tax you pay. You can check your tax credits on your Tax Credit Certificate, available through Revenue’s myAccount service.

Example:

Éilis is entitled to the following tax credits:

Single person tax credit = €2,000
Employee tax credit        = €2,000
Total tax credits               = €4,000

With her tax credits Éilis will pay €7,200 in income tax in 2025.  

For more information on tax rate bands and tax credits see Revenue.ie

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