Worksheet: One-Parent Family Payment and income from work

If you are getting a One-Parent Family Payment (OPF), this worksheet will help you to work out how taking up a job will affect your weekly income.

Step 1: Find how income from work will affect your One-Parent Family Payment

Find your assessable income from work (see Note 1 below) €_______

Assessable income is your gross income less PRSI, pension contributions and trade union subscriptions.

Note 1

Take away €165 from your weekly earnings (if earnings are below €165, you will keep your full OFP). Half of your weekly earnings above €165 is assessed as income.

New rate of One-Parent Family Payment €_______

To find your new rate of OPF, check SW 19 Social Welfare Rates of Payment to find out how much OPF is payable with your means.

Step 2: Find your new total gross weekly income

Your total weekly income is your new rate of One-Parent Family Payment and your income from work before tax.

New rate of One-Parent Family Payment (see Step 1 above) €_______
Add Gross weekly income from work €_______
Total Gross weekly income €_______

Step 3: Find your new total net weekly income

Your total weekly income is your new rate of One-Parent Family Payment and your income from work after tax.

From this calculation you will be able to find out if you are financially better off.

Gross weekly income €_______
Less Universal Social Charge - see Note 2 below €_______
Less PRSI paid each week - see Note 3 below €_______
Less income tax paid each week - see Note 4 below €_______
Total net income €_______

Remember, you may have to pay child-minding and travel costs out of your net income

Note 2

You will pay a Universal Social Charge (USC) on your gross income from work (if your overall income is above €13,000). You do not pay USC on your OFP payment.

Note 3

You pay PRSI on income from your work only, not on your One-Parent Family Payment. If you earn less than €352 a week you do not pay any PRSI. You only pay PRSI for the weeks you work.

Note 4

You pay income tax (PAYE) on all your income: that is your gross weekly income (see Step 2 above).

To calculate how much income tax you pay each week, multiply your gross weekly income by 20% to get the gross amount of income tax payable each week.

Total gross income by 20% €_______
Less Weekly Tax Credit (see below for calculation)

Total income tax paid each week €______

Note that in practice your OFP payment is coded in against your tax credits and rate band by Revenue - this worksheet simply shows you how to work out how income from work will affect your OFP.

The amount that you can earn before you start to pay the higher rate of tax (40%) is known as your standard rate cut-off point. You can see examples of how to calculate income tax using these tax rates and the standard rate cut-off point.

Tax Credit for 2024

Personal Tax Credit: €1,875
Add Single Person Child Carer Tax Credit (if eligible): €1,750
Add Employee Tax Credit: €1,875
Total Tax Credit: €5,500

Divide by 52 to give weekly tax credit.

Weekly Tax Credit: €105.77

Extra benefits

Other tax free allowances

You may be able to claim Mortgage Interest Relief and tax relief on medical expenses.

If you are a tenant in private-rented accommodation, you may be able to claim some tax relief for rent paid.

If you are a widowed parent, you can claim a Widowed Parent Tax Credit.

You can get more information about tax credits and reliefs.

Secondary benefits

You should keep your medical card for 3 years from the date you take up employment – check with your local Health Service Executive Area.

Rent Supplement

You can use our worksheet on Calculating Rent Supplement to see how your Rent Supplement will be affected by income from work.

Working Family Payment (WFP)

You can claim WFP if you are working at least 19 hours per week, or 38 hours per fortnight, and your income falls below the income threshold for your family size.

Working Family Payment is not taxable and does not affect secondary benefits.