The Foreigners Guide To Working In Ireland by uGP1wnX


									The Foreigners Guide To
Working In Ireland
A practical guide to working in the Emerald Isle
The Foreigners Guide to Working In Ireland

The following booklet will provide you with a guide to some of the fundamentals of
working in Ireland. Reading this booklet will give you an overview about residence
permits, getting a PPS number, how to open a bank account and how tax is

More information about your rights and responsibilities as a resident of Ireland can
be found on

Coming from the EU to work in Ireland
As an EU national you are entitled to come to Ireland to take up employment or self-
employment. There are certain requirements in connection with residence permits
that you need to fulfil.

The same position applies for nationals from the European Economic Area countries
(Norway, Iceland and Liechtenstein) and Switzerland.

Residence permits

As an EU national coming to Ireland to work or take up self-employment in Ireland,
you are entitled to a residence permit.

When you come to Ireland you do not have to report your presence in the country

You must register within three months of your arrival and apply for a residence
permit. To get a residence permit you should, if in Dublin, go to the Immigration
Office and fill out the application form. In other areas, you should go to the local
Garda station.

You will need to show that you are in employment or self-employed. If you are
employed, your employer must complete part of the form. If you are self-employed,
you must show some evidence of this, for example, VAT registration or documents
showing evidence of activity. Your dependants will have to show that they are
dependants; marriage and birth certificates are usually required.

A residence permit is granted for five years and is renewable.

If you are refused a permit or if it is withdrawn, there are special procedures for

The overall responsibility for residence permits rests with the Department of Justice,
Equality and Law Reform. A form for an application for an Irish residence permit may
be obtained from the Department.
Rights while working in Ireland
As an EU national working in Ireland, you are entitled to exactly the same rights as
Irish citizens with regard to social welfare, employment and social rights generally.
If you are posted here by your employer on a temporary basis, you are entitled to the
equivalent of medical card services. If you are employed or self-employed and
staying on a permanent basis, you come under the same rules for entitlement to
health services as Irish nationals generally. Therefore, you must pass a means test
to get a medical card.

Personal Public Service Number

To work in Ireland you will need to obtain a Personal Public Service Number (PPS
No.) Your PPS number is a unique reference number that helps to you to gain
access to social welfare benefits, public services and information in Ireland. State
agencies that use PPS Numbers to identify individuals include the Department of
Social and Family Affairs, the Revenue Commissioners and the Health Services
Executive (HSE) Areas. The PPS Number is the new name for the Revenue and
Social Insurance (RSI) number. If you already have a RSI number, it will not change,
it will simply be known from now on as your PPS Number.

You can use your PPS Number for:

      All social welfare services
      The Free Travel Pass
      Pupil ID
      Public health services, including the medical card and the Drugs Payment
      Child immunisation
      Schemes run by the Revenue Commissioners, such as Mortgage Interest
      Housing grants
      Driver Theory Testing and driver licenses

A PPS No. has already be issued to you if:

      You were born in Ireland in or after 1971
      You started work in Ireland after 1979
      You are in receipt of a social welfare payment
      You are taking part in the Drugs Payment Scheme.

PPS Numbers are printed on the following documents:

      Social Services Card
      Drugs Payment Card
      P60 (the annual statement of pay, tax and social insurance contributions from
       your employer)
      P45 (the statement of tax and pay to date issued by employer when you leave
      Tax Assessment
      PAYE Notice of Tax Credits
      Temporary Payment Card

You cannot apply for a PPS Number before your arrival in Ireland. You must be
already living in Ireland in order to apply for a PPS Number. You will be asked to
produce documentary evidence of identity and residence in Ireland. Different
documentary evidence will be required, depending on your nationality. The following
is a list of documentary evidence required for EEA citizens (EU nationals - other than
the UK –and citizens of Iceland, Norway and Liechtenstein) as well as Switzerland.

PROOF OF ID - EEA citizens:

      Current Valid Passport or National Identity Card
      Evidence of either birth/work/unemployment/residency/tax liability/education in
       an EU/EEA country or Switzerland
      Evidence of address in Ireland

The following will not be accepted as Proof of ID:

      Short version of a Republic of Ireland Birth Certificate
      Provisional Driving Licence
      Baptismal Certificate
      Personal letters
      Photo-copies of certificates
      Statements or Books for recently opened Savings Accounts

The usual proof of address is a utility/household bill but if you don't have one the
following are acceptable alternative documents showing address: Official
letter/document, financial statement, property lease or tenancy agreement,
receipt/bill for rented accommodation, a letter from your employer confirming
employment and showing your address. If you are staying with friends or relatives
and have none of the above documents then a letter from the householder
confirming your residency is acceptable. You will appreciate that all above
documents must show both your name and Irish address. If you are a married
woman where no bills or documents are in your own name you should mention this
and present the household bill.

Only the Department of Social and Family Affairs can provide you with a PPS No.
Contact your local social welfare office about applying for a PPS No. Your local
social welfare office may assist you with your application or they may direct you to
another social welfare office.

If you do not know your PPS No., contact your local social welfare office and staff
there will find your number for you.
If you are unsure as to whether a particular organisation, person or agent is entitled
to request or use your PPS No., you should contact the Department of Social and
Family Affairs at (01) 704 3236 or e-mail

Getting a bank account

Some form of bank account is necessary if you are living and working in Ireland.
Having a bank account allows you to save money, to make financial transactions, to
receive your pay etc.

Financial service providers offer many different accounts. For example, banks, credit
unions, building societies and An Post all provide a range of accounts. There are,
generally, two categories of account; a current account and a deposit account:

      A current account allows you to make day-to-day transactions (i.e., paying a
       bill, receiving your salary straight to the account, making transactions etc.).
       These are offered only by banks and building societies
      A deposit account allows you to build up savings and you may earn interest
       on this money. These are offered by most financial services firms – banks,
       building societies and Credit Unions

You should shop around to find the most suitable type of account for your needs.
When you open an account try to assess what your needs are and how you need to
store and access your money.

Opening a bank account

When you open a current account you should be aware of the services that you can
have on the account. You should also be aware of the fees and charges associated
with the account. When you open a deposit account you should know what
percentage of your money you may earn in interest on your savings. You should also
find out how you can access your money should you need it.

A financial institution is obliged to establish your identity and verify your address
before you can open a bank account.

Before you open an account with a financial service provider, they are obliged to
establish your identity and verify your address.

Money laundering is the process where the source of illegally obtained money is
disguised. Under the law, the minimum requirements for opening an account are to
establish a true name and date of birth for the applicant and to establish the
applicant's address. Most banks ask for a form of identification with a photograph on
it (such as a passport or a driver's licence) and proof of address (such as a utility bill
addressed to the applicant). You cannot use the same document as proof of both
your identity and your address. These are minimum requirements and it is at the
discretion of the bank to look for further information.
The following is a list of forms of identification that provide evidence of your name
and date of birth:

      Passport
      Current Driving licence
      Current identity card with a photograph from a known employer
      Current Student identity card with a photograph issued by a known third level
      Identification card with photograph issued by an Garda Siochana
      (Please note that a USIT or International Student Identity Card (ISIC) is not
       acceptable nor is a bus pass)

The following is a list of documents that provide evidence of your address:

      Recent original utility (for example electricity, gas or telephone) bill in your
      Current Driving licence
      Identification card with photograph issued by an Garda Siochana
      Pension /benefit book issued by the Department of Social, Community and
       Family Affairs
      Recent original bank statement issued in your name
      Entry in the electoral register or a telephone or street directory
      An Post savings or investment document in your name
      Notice of Determination for Tax Credit from Revenue Commissioners
      Current Balancing Statement from Revenue Commissioners
      Current Household or Motor Insurance documents

If you do not have any of the above documents the bank or other financial institution
can ensure your identity in other ways. Contact the bank or financial institution to find
an acceptable alternative.

For customers who do not normally reside in the Republic of Ireland the bank or
financial institution may ask for a reference from a bank in the home country of the

How Your Tax is Calculated

Tax on income you earn from employment in Ireland is deducted directly from your
salary/wages by your employer. This tax is then paid by your employer directly to the
Revenue Commissioners who collect taxes on behalf of the Irish Government.

The 'tax year' in Ireland operates on the calendar year basis (i.e., January -
December). At the start of each 'tax year', you will receive a statement from the
Revenue Commissioners. This statement is called a "Notice of determination of tax
credits and standard rate cut-off point". The Notice shows you the value of your tax
credits and your standard rate cut off point.

Tax Credits
Tax credits are the part of your income on which you are not liable for tax. In other
words, you do not pay tax on all of your income and you can earn or receive a
certain amount of income before you begin to pay tax. What this amount will be
depends on the value of your tax credits.

Tax credits consist of various allowances and reliefs which you may be able to claim,
depending on your circumstances. (Every individual can claim a personal allowance
for example, and you can also claim relief for items such as private health insurance
premiums, mortgage interest etc.). Details of all the main allowances and reliefs
(including the amount due for the current year) are given on the explanatory leaflet
issued to you each year from the Revenue Commissioners with your certificate of tax
credits. This information is also available from your tax office or online from the
website of the Revenue Commissioners.

The Standard Rate Cut-off Point

For each pay period, you pay tax at the standard rate (20%) up to your
standard rate cut-off point.

Your standard rate cut-off point is calculated by the Revenue Commissioners by
adjusting your standard rate band (downwards for any non-PAYE income and
upwards for any tax reliefs available at the higher rate of tax). Any income above
your Standard Rate Cut-Off Point is taxed at 42%.

To calculate out how much tax you will pay under the tax credit system, you
need to do the following:

1.    Tax all of your income to find your "gross tax". Income below the Standard
Rate Cut-Off Point is taxed at 20%. Any income above the Standard Rate Cut-Off
Point is taxed at 42%.

2.    Take your Tax Credits away from your gross tax. This gives you the amount of
tax you pay.


Example of a single person without dependent children earning 30,000 euro over a
full tax year.

      Step 1 - Calculate Gross Tax on 30,000 euro

Tax 29,400 euro @ 20% (Standard Rate Band is 29,400 euro and there are no
adjustments so standard rate cut-off point is 29,400 euro = 5,880 euro

Tax the remaining 600 euro @ 42% = 252 euro

Total gross tax = 6,132 euro

      Step 2 Tax Payable
Total Gross Tax = 6,132 euro

Less tax Credits = 1,580 euro

Tax Payable = 4,552 euro

The above is based on a full tax year.

It is important to check with the Revenue Commissioners that you are claiming all
the Credits you are entitled to (see Revenue leaflet IT1)


Your own personal circumstances will dictate the amount of tax credits you are
entitled to. Further information about tax credits and revisions of existing credits is
available from your local tax office.

It's important to be aware that pay you receive through working extra hours
(overtime), bonuses etc., is included as part of your taxable pay for that week or
month. You do not get any additional tax-free allowances against these additional

Tax is also payable on earnings of all kinds that result from your employment
(including for example, bonuses, overtime, non-cash pay or 'benefit-in-kind' such as
the use of company car, tips, Christmas boxes etc.). You do not pay tax on:
Scholarship income, Interest from Savings Certificates, Savings Bonds and National
Installment Savings Schemes with An Post, and payments to approved pension

How to apply

Further information about the PAYE system of tax in Ireland, tax reliefs and rates for
2004 is available from your nearest tax office (remember to have your PPS Number
to hand for enquiries). Information about tax and employment is also available online
through the website of the Revenue Commissioners.

The following forms are available from the Revenue Commissioners.

Form 11

Form 11

Form 12

The Payment of Wages Act 1991 gives all employees in Ireland a right to a pay slip
which will show the gross wage and details of all deductions. A pay slip is essentially
a statement in writing from the employer to the employee that outlines the total pay
before tax and all details of any deductions from pay. Your right to a pay slip is set
down in Section 4 of this Act.
Example of a pay slip

Deductions from pay

An employer may not make deductions from your wages unless:

      They are required by law, for example, tax (PAYE) and social insurance
      They are provided for in the contract of employment, for example occupational
       pension contributions.
      They are made with your written consent, for example, trade union
      They are to recover an overpayment of wages or expenses
      They are required by a court order, for example, an attachment of earnings
       order in a family law case
      They arise due to your being on strike

Where your employer suffers loss through your fault, for example breakages or till
shortages or your employer supplies a service as part of the job, for example, a
uniform, deductions may be allowed but only where:

      They are allowed for in your contract
      They are fair and reasonable
      You have received a written notice of the deduction - a full week's notice if the
       deduction arises from your mistake
      The amount of the deduction does not exceed the loss or cost of the service
      The deduction takes place within 6 months of the loss/cost occurring

The information in this booklet is intended as a guide only. Please ensure you seek
advice and information from your employer and your local authority if you are unsure
about any of the above.

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