Maternity Benefit Taxation in Ireland: 2025 Rates, Rules

Ireland’s Maternity Benefit is a taxable payment made to female employees on maternity leave for pregnancy and infant care.

The standard Maternity Benefit rate is €289 per week in 2025 and is paid for 26 weeks.

Let’s explore how the payment is taxed and some related FAQs. 

Do Employees Pay Tax on Maternity Benefit in Ireland?

Much like other Irish Employee Benefits, Maternity Benefit is subject to Income Tax. 

The Irish Revenue Department adjusts the personal tax credits and rate band of your employees on maternity leave to account for the taxation of Maternity Benefit.

What are personal tax credits and rate bands?

• Tax credits are given to people who pay Income Tax and can be used to reduce their tax bill. 

• The rate band refers to the tax charged on your employees' income level. As of January 2025, rate bands stand at 20% and 40%. 

• The 20% tax rate applies to the first part of your employees’ income — up to a specific amount: 

  • Single person -  €44,000 annually.

  • One-parent family - €48,000 annually.

  • Married couples/civil partners with one income - €53,000 annually.

  • Married couples/civil partners with two incomes - up to €88,000 annually.

Please note that the figures mentioned above are for 2025.

How is Maternity Benefit Taxed in Ireland?

The tax rate is 20% for the weekly Maternity Benefit payment. 

In other words, if your employees receive the full Maternity Benefit payment in 2025, they will have a tax due of €57.80 (€289 x 20%) every week. 

Revenue will take this amount, and they will deduct it from your employee’s tax credits and rate band.

The catch?

The adjusted tax credit certificate and rate band apply for the duration of the Maternity Benefit only. When your employee returns to work, the tax credit certificate is readjusted.

Different taxation methods are applied based on the allowance type received by your employees:

• Employees receive full wage while their Maternity Benefit is paid to you: Your employees receive a tax and PRSI refund through weekly tax credits. This means only the difference between the full wage you pay and the Maternity Benefit they receive is subject to Income Tax, PRSI, and USC.

• 'Top-up' weekly earnings received along with Maternity Benefit: Only the earnings your employees receive from you are subject to PRSI, USC, and Income Tax.

• No wages paid, only Maternity Benefit received: You may need to update your employee’s Revenue Payroll Notification (RPN) to reflect their Maternity Benefit. If they qualify for a tax refund, they must contact their Revenue office for more information.

Feeling confused with all that information?

Here’s an example: 

• Suppose your employee earns a weekly wage of €700. 

• Their annual tax credits are €4000 (or €76.92 weekly).  

• Their annual rate band is €44,000 taxed at 20% (or €846.15 taxed at 20% weekly), with the balance taxed at 40%.

They start their maternity leave on 1 February 2025 and qualify for a Maternity Benefit payment of €289 per week, paid to you. 

As their employer, you pay the weekly wage of €700 while they’re on maternity leave. This is an example of a “top-up” wage payment.

• Your employee’s annualised Maternity Benefit is €289 x 52 weeks = €15,028. This must be deducted from their rate band.

• So their rate band is €44,000 (original rate band) - €15,028 (annual Maternity Benefit) = €28,972.

• Their tax credits must also be adjusted to account for the 20% tax on Maternity Benefit — 20% of €15,028 = €3,005.60.

• This is reduced from the annual tax credit amount of €4000. So your employee’s revised annual tax credits are €4,000 (original tax credits) - €3,005.6 (tax on Maternity Benefit) = €994.40.

• Their weekly tax credit is €994.40 / 52 weeks = €19.12.

• Their weekly wage breakdown during maternity leave:

  • Maternity Benefit: €289 (already tax-adjusted)

  • Employer's top-up: €700 - €289 = €411

• The Maternity Benefit amount has already been tax-adjusted. However, your employees still have to pay PRSI, USC and Income Tax on the €411.

• Tax on employer's top-up:

  • Gross tax: 20% of €411 = €82.20

  • Net tax: €82.20 - €19.12 (weekly tax credit) = €63.08

• Total tax, PRSI, and USC on the €411:

  • Income Tax: €63.08 (as calculated above)

  • PRSI and USC: These will be calculated based on the specific rates applicable to your employee’s income bracket.

• Once your employee returns to work after maternity leave, their annual tax credits and rate band will revert to €4,000 and €44,000, respectively.

Maternity Benefit Claims Spanning Two Years

When your employee is on maternity leave across two tax years, the Maternity Benefit paid in the second year is taxed by reducing tax credits and the rate band on a cumulative basis. 

This means the tax due for the second year is spread over the entire year. 

Couples Taxed Under Joint Assessment

Where the mother does not have enough tax credits and rate band to cover the taxation of the Maternity Benefit payments, Revenue will collect the remainder from the spouse or civil partner. 

4 FAQs About Maternity Benefit in Ireland

Here are the answers to some commonly asked questions on Maternity Benefit:

1. How Much Maternity Benefit Is Paid to Employees in Ireland?

The standard rate of Maternity Benefit is €289 each week in 2025.

Your employees will receive a half-rate Maternity Benefit (€144.5/week) if they qualify for Maternity Benefit and certain social welfare payments like the One-Parent Family Payment.

2. How Long Can Employees Take Maternity Leave in Ireland?  

Expectant mothers can take 26 weeks of maternity leave and receive Maternity Benefit for the entire term. They can also take a further 16 weeks of unpaid maternity leave if required. 

3. Who Qualifies for Maternity Benefit?

Maternity Benefit is paid to women who:

• Are employed, recently employed, or self-employed.

• Take time off for maternity leave.

• Meet the relevant conditions for Pay Related Social Insurance (PRSI) contributions (payment made by you and your employees).  

Refer to our detailed guide for more information on Maternity Benefit Eligibility. 

4. What Other Family Benefits Can Irish Employees Receive?

The Irish Department of Social Protection (DSP) provides family income supplements and social welfare payments like Maternity Benefit, Adoptive Benefit, and Child Benefit. 

Support Your Employees Beyond Maternity Benefit with Kota 

Ireland’s Maternity Benefit offers financial support for your pregnant employees on maternity leave, but that alone may not be enough. They also need health insurance coverage for consultations, vaccinations, antenatal classes, and more. 

With Kota, you can offer comprehensive health benefits, including maternity extras and fertility support like IVF coverage and emotional well-being services.

Join Kota to make sure your pregnant employees are cared for.