Although the Government introduced the State Pension Contributory in Ireland in 2016, there are still many people who don’t know how to calculate their pension entitlement. Here, we create a step-by-step guide with examples on how to calculate your State Pension Contributory.
What is the State Pension?
The State Pension in Ireland is based on your lifetime earnings and contributions. You can find out how much you’ll get by using our State Pension calculators.
To calculate the State Pension in Ireland, you need to know:
Your pensionable years. This is the amount of time you have worked for the state and contributed to your pension. The number of years you have worked will depend on when you started working, but it’s usually between 35 and 40 years.
Your average earnings. This is what you earned over your pensionable years – this includes both your salary from work, as well as any other income, such as bonuses or pensions you’ve received during that time.
Your gender. Women’s State Pension benefits are lower than men’s because they typically retire earlier and have fewer years of contributory service. If you’re a woman, use our women’s state pension calculator to work out how much money you could expect to receive in retirement.
How much do I need in order to get a state pension?
To calculate the state pension in Ireland, you first need to know your qualifying years. To find out, use the State Pension Age Calculator on the Irish government website.
Once you have your qualifying years, you need to find out how much money you contributed to your pension during those years. To do this, use the State Pension Calculation Worksheet on the Irish government website.
Finally, you need to know how much your pension will be each month. To find out, use the Irish State Pension Calculator on the Irish government website.
What is the State Pension Contributory?
The State Pension in Ireland is contributory. This means that you contribute a percentage of your income towards your retirement pension. The percentage of contribution you make will depend on your salary and how long you have been employed with the same employer.
To calculate the State Pension Contributory in Ireland, first find out your yearly gross salary from your most recent payslip. To do this, simply add up all of the amounts shown on the payslip, including any bonuses or gratuities received. Then divide this figure by 12 to get the monthly gross salary.
Next, find out how many years of qualifying employment you have with the same employer. To do this, take your monthly gross salary and divide it by 12 to get the number of months worked. This number should be equal to or greater than the number of years shown on your birth certificate (if you are aged 18 or over). If it is not, then you will need to extend your qualifying period by another year.
Now it’s time to work out your State Pension Contributory percentage. This percentage is based on how much of your annual gross salary you contribute towards your retirement pension each month. To do this, multiply the number shown for “monthly gross salary” by “contributory rate”. For example, if my monthly gross salary is €2,000 and I want to contribute 8% towards my retirement pension each month, my contributory rate would be 800/12 (or 0.8).
How much will my state pension be.
The State Pension in Ireland is based on your average national pension. To calculate the State Pension, you first need to know how much your average national pension is.
To find out your average national pension, you can use the Pensions Calculator from the Department of Social Protection website. This calculator will take into account any private pensions that you have and will give you an estimate of your State Pension.
Once you have found out your average national pension, you can use this figure to calculate your State Pension contributory amount.
To calculate your State Pension contributory amount, you need to work out how much of your average national pension you are responsible for paying in. This is done by multiplying 0.6% of your average national pension by the number of years that you have worked for the state (i.e. 35 years x 0.6%).
This means that if you have worked for 35 years and earned an annual salary of €47,000, then you would be responsible for paying €1,764 per year in contributions towards your State Pension (i.e. 0.6% x €47,000 = €128).
Should I take extra contributions?
The State Pension in Ireland is payable by both employees and employers. Employees make contributions into their pension scheme, which is then invested on their behalf. Employers also contribute a compulsory social insurance contribution (CSIC) for each employee. This article will outline how to calculate the State Pension contributory in Ireland, based on an individual’s salary and relevant periods of employment.
To begin with, you will need to know your annual gross salary (before tax) and the number of years that you have worked for your current or previous employer. To calculate the State Pension contributory in Ireland, take your annual gross salary and divide it by 36. This will give you a figure called ‘premiums’. You must also deduct any CSIC contributions that you have made during the year – this will be shown on your payslip as an additional deduction from your salary. The resulting figure is your State Pension contributory amount. If you are currently receiving a State Pension, this is already taken into account when calculating your premiums – so there is no need to add it back in later on.
There are different rules depending on whether you are an employee or an employer in Ireland:
As an employee , your State Pension contributory amount is based on your total weekly earnings over the week before retirement age (65 for men, 60 for women). Your premiums are calculated using the same method as above, but with the addition of 4% of your weekly earnings up to a maximum of €188
