Income

Income

• Is money you receive.

• Or a benefit in kind you receive.
• It can be regular or additional.
 Benefit in Kind
• Is non money income.
• Eg.
• Company car
• Vouchers for fuel or butter
• Gift vouchers….
 Regular Income
• Is what you are sure of receiving.
• You can plan to spend it.
• Wages
• Child benefit….
 Additional Income
• Is what you are not sure you will
receive.
• You cannot plan to spend it
• Bonus
• Present….
 Pocket Money
• A small weekly sum of money given to
children as an allowance.
• Is this additional or regular income??
 Wages
• Is regular income for hours worked
or number of goods produced.
• Eg. Builder
 Salary
• Is regular income received for doing
a job no matter how many hours you
spend at it.
• Eg. Teacher
 Tax Refund
• Money back from the government
when too much tax has been paid.
• Is this additional or regular income??
 Family Income Support
(FIS)
• Received by families on a low income.
 Child Benefit

• Regular income received once a

month from the government if you
have children under the age of 16.
 Social Welfare

• Regular income receive weekly from

the government if you are unable to
work.
• Eg. Job seekers allowance
 Pension

• Regular income received from the

government or a pension fund when
you retire.
 Rental Income

• Regular income received when you let

out your house or a room in your
house.
 Interest on Savings

• Addition income received when you

invest money in the bank.
 Dividends on Shares

• Additional income received when you

have own part of a company and you
receive a share of the profits.
 Inheritance

• Additional income received from a

relative or friend when they die.
 Gift

• Additional income received from a

relative, friend or employer.
• It may be cash or a benefit in kind.
 Types of Employee
Income
1. Time Rate:
 Getting paid per hours worked.

2. Piece Rate:
 Getting paid per number of
products produced.
 4. Commission
• Additional income calculated as a
percentage of sales.
• Eg.
• Mary earns 5% commission on every
euro worth of books she sells.
• How much does she earn for selling
200 euro worth?
• 200 X 5
100

10 Pesos
 5. Bonus
• Additional income given for reaching
certain targets.
 6. Basic Wage

 Regular weekly payment for normal

hours worked.
 Eg. €10 x 30 hrs = €300
7. Overtime
• Additional payment for working over
your normal hours.
Eg.
• Time and a half. €10 x 1.5 = €15/hr
• Double time. €10 x 2 = €20/hr
• Treble time. €10 x 3 = €30/hr
 Example
• Mary receives €20/hr for a normal
30 hour week and double time for
overtime.
• How much does she earn for a 32
hour week?
 Answer
• Basic Pay= €30 x 20 = €600
• Overtime = 2 x (€20 x 2) = € 80
• Total €680
 Gross Wage

• Basic Wage + Overtime

before deductions
 Net Wage
(Take Home Pay)

• Basic pay + overtime

after deductions
 Voluntary Deductions
• You have a choice if you want to take
these out of your wages.
• Savings
• Pension (Superannuation)
• VHI
• Trade Union Fees
 Statutory Deductions
• You do not have a choice these must
be taken from your wages.

• PAYE: Pay as You Earn (Tax)

• PRSI: Pay Related Social Insurance
Consequential benefits of
PAYE
• Paying tax entitles you to the,
• Use of national roads
• Use of a public ward in the hospital
• Education in schools
 Consequential benefits of
PRSI
• Paying PRSI entitles you to,
• Maternity Benefit
• Unemployment Benefit
• Sickness Benefit
• Old Age Pension