The Employee Tax Credit (also known as the PAYE Tax Credit) is one of the most valuable tax credits in Ireland—worth €2,000 per year. If you're a PAYE employee, this credit should be automatically applied to your wages. But what if it's not? Or what if you're entitled to it but it hasn't been set up correctly?
Our specialists ensure workers receive all the credits they're entitled to. Here's everything you need to know about the Employee Tax Credit.
📊 Employee Tax Credit
- Value: €2,000 per year
- Who qualifies: PAYE employees
- How it works: Reduces tax bill directly
- Combined with: Personal Tax Credit (€2,000)
What Is the Employee Tax Credit?
The Employee Tax Credit is worth €2,000 and is available to anyone who earns income as a PAYE employee. It reduces your tax bill directly—a €2,000 credit means €2,000 less tax to pay.
Combined with the Personal Tax Credit (also €2,000), most single PAYE workers have at least €4,000 in basic tax credits before any additional credits are considered.
Who Qualifies?
You qualify for the Employee Tax Credit if you:
- Are employed and paid through the PAYE system
- Have income that's subject to PAYE tax
- Work in Ireland (or pay Irish tax on your employment)
This includes full-time employees, part-time workers, students with jobs, and anyone paid through PAYE.
Is Your Credit Being Applied?
Check your payslip or Tax Credit Certificate. You should see:
- Annual tax credits of at least €4,000 (Employee + Personal)
- Weekly credits of approximately €76.92 per week
- Monthly credits of approximately €333.33 per month
If your credits are lower—especially if they show €0 or very low amounts—something may be wrong with your tax setup.
⚠️ Warning Signs
If your payslip shows "EMERG" (emergency tax) or "Week 1" basis, your credits likely aren't being applied correctly—and you're probably overpaying tax.
Common Problems
Several issues can prevent the Employee Tax Credit from being applied correctly:
- Job changes: Credits may not transfer immediately
- First jobs: Credits may not be set up yet
- Multiple jobs: Credits may be split incorrectly
- Admin delays: Processing gaps at Revenue
If any of these have happened to you, you may have overpaid tax that can be claimed back.
💡 Real Example
Michael started his first job without registering with Revenue. For three months, he had no Employee Tax Credit applied. When we reviewed his tax, we claimed back the overpayment—€1,560—plus additional reliefs he didn't know about.
Additional Credits You Might Be Missing
Beyond the Employee Tax Credit, you may qualify for:
- Rent Tax Credit – up to €1,000/year
- Single Person Child Carer Credit – €1,900
- Home Carer Tax Credit – €1,950
- Dependent Relative Tax Credit – €305
Our specialists check for every credit you're entitled to. The average refund is €1,080.
Are You Getting All Your Credits?
Our experts will review your tax and find every credit and relief you're entitled to.
Start Your Free Review →No refund, no fee • Average refund €1,080 • TAIN: 77632V
Frequently Asked Questions
Is the Employee Credit automatic?
It should be, once you're registered with Revenue and your employer has your correct details. However, gaps and errors do occur—especially around job changes.
Can I claim it if I'm self-employed?
The Employee Credit is only for PAYE employment. Self-employed individuals have the Earned Income Tax Credit instead (also €2,000).
Can I backdate missing credits?
Yes, we can claim back overpaid tax from the past four years. If your credits weren't applied correctly at any point since 2021, you may be owed money.
