BIK and benefits: why take-home pay can drop

This page explains how taxable benefits can affect PAYE, USC and PRSI in 2026. It is scenario guidance for planning and can differ from your payslip.

Open the calculator Company car BIK tool

Typical pattern

BIK increases taxable pay, which can increase PAYE and USC.
PRSI can also increase, depending on the benefit and PRSI class.
The effect is often larger when the benefit pushes you into higher bands or thresholds.

How to compare scenarios

Start with your cash salary scenario.
Add an estimated BIK amount and compare net pay.
If the benefit is a company car, use the company car BIK tool for a more specific estimate.

FAQ

What is BIK in Ireland?

BIK (Benefit-in-Kind) is a taxable benefit provided by an employer, such as a company car or medical insurance. It can increase the taxable amount used for deductions.

Does BIK affect PAYE, USC and PRSI?

In many common scenarios, BIK increases taxable pay and can increase PAYE, USC and PRSI. The exact treatment depends on the benefit type and payroll setup.

How should I model BIK in a net pay estimate?

For planning, treat BIK as increasing your taxable pay and compare scenarios with and without the benefit. For detailed modelling, use the dedicated BIK tools where available.

Recommended Next Steps

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