Róisín Shortall (Dublin North West, Labour)
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Question 186: To ask the Minister for Finance the income levy rate that will apply to someone on €40,000 who worked for the first four months of the year but takes maternity leave for the remainder; and if he will make a statement on the matter. [18021/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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An individual who has emoluments of €40,000 per annum but who takes maternity leave for the last 8 months of the year would have emoluments of €13,077 in respect of the first 17 weeks of the year (€40,000 x 17/52). In addition she would have a maximum maternity benefit of €280 per week for 26 weeks being €7,280. The final 9 weeks to end of year would be unpaid maternity leave.

This represents an annual income of €20,357. Of this income the maternity benefit paid by the Department of Social and Family Affairs is specifically exempted from the income levy. The balance of emoluments of €13,077 is less than the annual exempt threshold of €15,028. Therefore the individual in question would not be subject to income levy for the year. This assumes that the individual has no other income sources. Any levy deducted by the employer would be refunded on receipt of a claim after the end of the year of assessment.