Contributions to a pension scheme is subject to two main limitations.

The first, is an age-related percentage limit of an individual’s earnings in respect of the office or employment for the year for which the contributions are paid. The maximum amount of pension contributions in respect of which an individual may claim tax relief may not exceed the relevant age-related percentage of the individual’s earnings in any year of assessment. The age-related percentage limits are:

• Under 30 15%
• 30-39 20%
• 40-49 25%
• 50-54 30%
• 55-59 35%
• 60 or over 40%

A 30% limit applies below the age of 50 years to certain categories of professional sportspersons.

Secondly, there is an overall upper limit on the amount of earnings that may be taken into account for tax relief purposes. The earnings limit is set at €115,000. This limit applies whether an individual is contributing to one or more than one pension product. Where an individual is contributing solely to an exempt approved scheme, the maximum amount of tax relievable contributions is the relevant age-related percentage of the lower of: the individual’s earnings in respect of the office or employment, and the earnings limit.

Where an individual has two or more sources of income (for example, earnings from employment and profits from self-employment) and is making pension contributions to an occupational pension scheme and to an RAC and/or a PRSA, the single aggregate earnings limit of €115,000 applies in determining the amount of tax relievable contributions.

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