Who qualifies
Anyone making personal contributions to a Revenue-approved occupational pension, PRSA, RAC or AVC, subject to age-based percentage limits and the 115,000 euro earnings cap.
How to claim
Occupational scheme contributions are usually deducted at source through net pay arrangement. PRSA and AVC contributions can be claimed via myAccount Manage Your Tax. Self-employed claim on Form 11.
Detailed explanation
Pension contribution relief is granted at the marginal rate of income tax, which is 20 percent or 40 percent depending on your earnings. From 2026 the age-based contribution limits remain: 15 percent of net relevant earnings under age 30, 20 percent between 30 and 39, 25 percent between 40 and 49, 30 percent between 50 and 54, 35 percent between 55 and 59, and 40 percent at 60 or over. The earnings cap is 115,000 euro per year, so the maximum tax-relieved contribution for a 60-plus person is 46,000 euro. Employer contributions to occupational schemes are not counted against the employee limit and do not reduce the employee tax-relieved capacity. Employers paying into a PRSA on behalf of an employee are no longer subject to BIK on those contributions following the 2023 changes. PRSAs and RACs allow you to spread contributions across multiple providers without affecting the limit, since the limit is on the individual not the product. Contributions made before 31 October of the following year can be backdated to the prior tax year if you elect this on Form 11 or in the equivalent myAccount field. USC and PRSI relief on personal pension contributions was abolished in 2011 and remains so in 2026, meaning relief is only against income tax. Employer occupational scheme contributions remain free of USC and PRSI on the employee side. AVCs into an occupational scheme are claimed in the same way as personal contributions but are subject to the same age and earnings caps when combined with the employee main contribution.
Worked example
Aaron is 45 and earns 90,000 euro. The age-based limit is 25 percent of 90,000 = 22,500 euro. He contributes 15,000 euro to his PRSA. At 40 percent marginal relief he saves 6,000 euro of income tax, so the net cost of his 15,000 contribution is only 9,000 euro.