The earning limits have been indexed in line with the earnings factor since 2006, when it stood at €254,000. The limit stands at €275,239 for 2008 and will be reduced substantially for 2009 to €150,000. The measure will only affect taxpayers on higher incomes and will save the Exchequer €100 million in a full year. However, for the vast majority of taxpayers who save for retirement through supplementary private pension provision, this change will have no impact.

See this item in context