IE | Taxation of Paternity Benefit

Paternity leave of 2 weeks together with a new Paternity Benefit has been introduced for births and adoptions on or after 1 September 2016. 

Paternity Benefit paid by the Department of Social Protection (DSP) is liable to tax. USC and PRSI will not apply.

Employees will have their annual tax credits and rate bands reduced by the amount of the Paternity Benefit payment.

Employers will be advised of the adjusted tax credits and cut-off points on employer tax credit certificates (P2C).

Support to employers:

Telephone: 1890 25 45 65 (+ 353 1 7023014 if ringing from outside the Republic of Ireland)