Bonus Payments

Bonus payments in Ireland generally refer to employment bonuses taxed as regular income (Income Tax, USC, PRSI) or the government’s annual Christmas Bonus (a once-off, double-payment for social welfare recipients), paid automatically in December, not requiring applications. Employment bonuses are added to your salary and taxed at your marginal rate, while the Christmas Bonus is a tax-free, extra payment for qualifying long-term welfare recipients like pensioners, carers, and the long-term unemployed. 

Employment Bonuses (Pay from Work)

• Taxation: 

Treated as normal earnings, subject to Income Tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI).

• Calculation: 

Your employer includes it in your pay for that period, and tax is deducted at your normal rate.