Information Circular No 32/2013: ‘Haddington Rd Agreement’ – Reduced Rate of Pension-Related Deduction

By Industrial Relations Officer

The Haddington Rd Agreement provides for a reduction in the rate of the Pension-Related Deduction (PRD).  It has been confirmed that the Financial Emergency Measures in the Public Interest Act 2013 has amended the PRD rates with effect from 1st January 2014.

The amendment reduces the Second PRD band from 5% to 2.5% in respect of remuneration over €15,000 and less than or equal to €20,000.

The amended table that will apply to PRD rates with effect from 1st January 2014 is as follows:

Measure Bands Rates
Pension-Related Deduction €15,000€15,000 – €20,000

€20,000 – €60,000

Above €60,000

Exempt2.5%

10.0%

10.5%

The reduction of the PRD rate on the €15,000 to €20,000 pay band from 5% to 2.5% will result in savings of €125 per year for all members earning over €20,000 per annum.

 

 

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