From 1 July 2018, pensioners working on an agreement can claim a tax credit. This exemption
applies to pensioners who receive a retirement pension, early retirement pension, disability
pension, retirement pension after retirement age or disability
pension. It applies to work under a contract of employment or a contract of employment.
This article gives details of how pensioners can claim this relief. How does the levy relief work?
A pensioner can designate one agreement on which he or she will not pay pension contributions if
his or her income from that agreement does not exceed €200 per month. However, if the income exceeds this amount,
the pensioner pays pension insurance premiums only on the difference between the income earned and the amount
of €200. On all other agreements, he/she pays the pension insurance premiums. How does the pensioner claim the exemption?
The pensioner-agent must inform his employer in writing that the exemption has been claimed and
that it has been terminated. He or she must also declare on oath that he or she is not claiming the exemption with another employer in
the same calendar month. For this purpose, the form “Notification and affidavit
(levy relief – EMPLOYEES)” is available on the website of the Social Insurance Institution.

What’s new for early retirement pension recipients?
From 1 July 2018, early retirement pension recipients can work on an agreement with
exemption without the Social Insurance Institution stopping their pension payments. However, if their
income from this agreement per calendar year exceeds €2,400, the Social Insurance Institution will stop paying
the early retirement pension. It will resume payment of the pension and settle it in the following
calendar year. In order for the pension to be paid, the condition must also be met that the recipient of the
pension is not insured from other gainful employment.
As a pensioner, you have the opportunity to reduce your expenditure on insurance premiums. For clarity and support in
claiming these benefits, please contact the Social Insurance Office, which will provide you with all the necessary
information and forms. You can contact them on freephone 0800 123 123,
via the Enquiry Form on their website, or in person at their offices.