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Working as a substitute while receiving a teacher’s pension
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Under the current rules in 2024, retired teachers who have not taken up a post which will extend beyond 50 days will be eligible for the waiver. The waiver do not apply to those with contracts beyond 50 days duration. All retired teachers can work as a teacher for up to 50 days in any calendar year, without pension ‘abatement’ rules applying. Following that time, your pension may be impacted. You can find out how by contacting abatementqueries@education.gov.ie
Most retired teachers who are registered with the Teaching Council , may return to teaching, either through substitution or by applying to fill a fixed term contract.
Similar to other public sector workers it is possible that, when as a retired teacher you return to work in the public sector, your pension may be reduced if you earn over a certain amount. This is known as abatement.
Retired teachers returning to teach in the public sector who have not taken up a post which will extend beyond 50 days (e.g. a permanent whole/part time post, CID, etc.) are eligible for the 50 day waiver i.e. they can work up to 50 days in the calendar year, and abatement will not apply.
Your pension will only be reduced by abatement if your earnings when you return to employment plus your pension payment exceed your pensionable pay at retirement (uprated to reflect any pay changes since your retirement).
Abatement is calculated on a daily basis.
If you work beyond 50 days or are not eligible for the waiver, abatement will impact your pension. Please see the worked examples below.
Your pension will only be abated to the point that your pension, plus your earnings as a substitute teacher, no longer exceed your retirement salary. Any abatement will stop as soon as you stop working.
Abatement is calculated based on a retiree’s gross pension , salary and former pensionable pay at retirement.
Any impact of abatement is specific to each individual. If you have questions, you can contact the pensions’ team at abatementqueries@education.gov.ie
Your supplementary pension will stop for the period of your employment and will restart as soon as you stop working. It should be noted your supplementary pension will not be included in any abatement calculations which reduces the potential of your pension becoming subject to abatement.
The Waiver does not apply to Supplementary Pension.
Abatement is calculated and applied on a daily basis.
Your pay on return, pension, and pensionable pay at retirement will be divided by the number of work days in a year to arrive at the daily rate.
There are 182 working days in a primary school year
There are 166 days in a post-primary school year.
If (Pay on Return) + (Pension) > (Former Pensionable Pay) your pension will be abated.
1 “Former Pensionable Pay”: This is the present day value of the Pensionable Pay (that is salary and pensionable allowances) which was used in the calculation of your pension.
2 “Pension”: The gross public service pension payable to you and which is the subject of abatement. It does include your supplementary pension (if in receipt).
3 “Pay on Return”: The gross total of all salary, emoluments and allowances (whether pensionable or not) that you receive in their new/current position(s). (If a retired teacher is employed in two or more public service positions, then this is the aggregate of all earnings).
4 “Abatement”: This is a reduction in your public service pension(s) in circumstances where your pension(s) is in payment and you are re-employed in the public service.
The abatement waiver can be applied to the first 50 days worked in any calendar year (for the purpose of this circular, you are considered to have worked a full day regardless of the numbers of hours/minutes worked on that specific day).
Since retirees are moved to the first point of the pay scale upon returning to employment, the vast majority of retired teachers will not be subject to any abatement as a result of occasional substitute work.
Abatement becomes somewhat more likely for those retirees who have returned to work in a full-time capacity and/or have advanced several points up the pay scale. However even in these circumstances a large majority of retirees will not be subject to any abatement.
As of the end of 2023, 1,388 retired teachers including permanent teachers and teachers on fixed term contracts had returned to work in the primary school sector with only 2.88% of them falling to be abated (post application of the waiver). In the post-primary sector 359 retired teachers including permanent teachers and teachers on fixed term contracts returned to work with only 2.5% of these teachers’ pensions falling to be abated (post application of the waiver).
If you have any further queries about abatement please contact the Department of Education at abatementqueries@education.gov.ie
Paul is a retired post primary teacher who has returned to do some substitute work in various schools for a total of 49 days in the calendar year. As Paul does not exceed the 50 days granted by the waiver, abatement does not apply.
Bob is a retired primary teacher who has returned to do some substitute work. He has worked in excess of 50 days therefore the DE reviewed his case for potential abatement. Bob’s former pensionable pay is updated to reflect any pay increases since his retirement.
Bob’s current substitution rate is €41,385 per annum. (First point on the Primary Teacher Scale)
As there are 182 days in the primary school year, for each full day Bob works he will be paid a gross salary of €227.39 (€41,385/182).
Bob’s pension will be abated if his, (Pay on Return) + (Pension) is greater than (Former Pensionable Pay).
Bob’s annual rates are:
| Gross Pay on Return per annum | €41,385 |
| Gross Pension per annum | €40,079 |
| Gross Former Pensionable Pay per annum | €83,160 |
For calculating Bob’s abatement on a daily basis the following rates are used:
| Number of Days in school year: | 182 | |
| Pro rata for 1 day worked: | 1/182 = 0.005495 | |
| Pay on Return for 1 day worked: | €41,385 * 0.005495 = €227.39 | |
| Pension for 1 day worked: | €40,079 * 0.005495 = €220.21 | |
| Former Pensionable Pay for 1 day: | €83,160 * 0.005495 = €456.92 |
Therefore, in Bob’s case annually, (Pay on Return) + (Pension) = €41,385 + €40,079 = €81,464.
Since €81,464 is less than his annual former pensionable pay of €83,160, Bob’s pension will not be subject to any abatement if he maintains this annual salary.
Anne is a retired primary teacher who has returned to do some substitute work and has advanced several points on the salary scale. She has exceeded the 50 days under the waiver of abatement. Anne’s former pensionable pay is updated to reflect any pay increases since her retirement.
Anne’s pension will be abated if, (Pay on Return) + (Pension) is greater than (Former Pensionable Pay)
Anne’s rates are:
| Gross Pay on Return per annum | €45,701 |
| Gross Pension per annum | €36,118 |
| Gross Former Pensionable Pay per annum | €74,882 |
Therefore, in Anne’s case, (Pay on Return) + (Pension) = €45,701 + €36,118 = €81,819.
Since this is greater than Anne’s former pensionable pay by €6,937, her pension is subject to abatement annually by this amount.
In total Anne returned for 60 days. The first 50 were not subject to abatement under the waiver and the remaining 10 are reviewed to establish if they are subject to abatement
To calculate the amount of abatement for each day worked please follow the method below:
| Number of Days in school year: | 182 | |
| Pro rata for 10 day worked: | 10/182 = 0.054945 | |
| Pay on Return for 10 day worked: | €45,701 * 0.054945 = €2,511.04 | |
| Pension for 10 day worked: | €36,118 * 0.054945 = €1,984.50 | |
| Former Pensionable Pay for 10 day: | €74,882 * 0.054945 = €4,114.39 | |
| 10 days salary plus 10 days pension | €4,495.54 gross | |
| 10 days Abatement | €381.15 gross | |
| Daily Abatement | €38.12 gross |
To note in this the waiver has reduced the abatement liability in this case by €1,906 (€38.12 * 50).
Note: To calculate abatement for an RPT Contract:
Lisa is a retired post primary teacher. She has been offered an RPT contract at her old school where she will only be working half days. Lisa’s former pensionable pay is updated to reflect any pay increases since her retirement.
Lisa’s pension will be abated if, (Pay on Return) + (Pension) is greater than (Former Pensionable Pay)
Lisa’s rates are:
| Gross Pay on Return per annum | €45,701 (FTE) | €45,701/365.26 = €125.12 (Daily Rate) | |
| Gross Pension per annum | €36,118 | €36,118/365.26 = €98.88 (Daily Rate) | |
| Gross Former Pensionable Pay per annum | €74,882 | €74,882/365.26 = €205.01 (Daily Rate) |
Therefore, in Lisa’s case, (Pay on Return) + (Pension) = €45,701 + €36,118 = €81,819.
| Daily Salary plus Daily Pension | €224 gross |
| Daily Abatement | €18.99 gross |
| Daily Abatement pro rata (0.5) | €9.50 gross |
Laura is a retired post primary teacher who has returned to work on a substitute basis, under this contract she works 3 x 40 minute classes per week. Laura’s former pensionable pay is updated to reflect any pay increases since her retirement.
Laura’s pension will be abated if – (Pay on return) + (Pension) is greater than (Former Pensionable Pay)
Laura’s rates are:
| Gross Pay on Return per annum | €37,499 |
| Gross Pension per annum | €36,750 |
| Gross Former Pensionable Pay per annum | €73,500 |
Therefore in this case, (Pay on Return) + (Pension) = €74,249.
Since this is greater than her Former Pensionable Pay of €73,500, her pension will be subject to abatement for the hours she works.
To calculate the amount of abatement for each class worked, please follow the method below:
| Number of Days in school year | 166 | |
| Pro rata for 1 day worked | 1/166 = 0.6024% | |
| Pro rata for 40 minute class | 0.0913% (calculated on 4.4 hours per day) | |
| Pay on Return for 1 x 40 minute class | €34.23 | |
| Pension for 1 x 40 minute class | €33.54 | |
| Former Pensionable Pay for 1 x 40minute class | €67.09 |
Therefore the cost of abatement for 1 x 40 minute class is €34.23 + €33.54 = €67.77. As €67.77 is greater than the Former Pensionable Pay of €67.09, the Pension is abated for €0.68 for each 40 minute class worked, which results in a weekly abatement with 3 classes taught of €2.04.
Karen is a retired post primary teacher who has returned to work on a substitute basis, under this contract she works 10 x 40 minute classes per week. She is not entitled to the 50 day waiver as she has taken up a post which will extend beyond 50 days. Karen’s former pensionable pay is updated to reflect any pay increases since her retirement.
Karen’s pension will be abated if – (Pay on return) + (Pension) is greater than (Former Pensionable Pay)
Karen’s rates are:
| Gross Pay on Return per annum | €37,499 |
| Gross Pension per annum | €36,750 |
| Gross Former Pensionable Pay per annum | €73,500 |
Therefore in this case, (Pay on Return) + (Pension) = €74,249.
Since this is greater than her Former Pensionable Pay of €73,500, her pension will be subject to abatement for the hours she works.
To calculate the amount of abatement for each class worked, please follow the method below:
| Number of Days in school year | 166 | |
| Pro rata for 40 minute class | 0.0913% (calculated on 4.4 hours per day) | |
| Pay on Return for 1 x 40 minute class | €34.23 | |
| Pension for 1 x 40 minute class | €33.54 | |
| Former Pensionable Pay for 1 x 40 minute class | €67.09 |
Therefore the cost of abatement for 1 x 40 minute class is €34.23 + €33.54 = €67.77. As €67.77 is greater than the Former Pensionable Pay of €67.09, the Pension is abated for €0.68 for each 40 minute class worked, which results in a weekly abatement with 10 classes taught of €6.80.
The table below sets out the Gross Pay on Return less Abatement for 1 week:
| Gross Pay on Return | €34.23 * 10 = €342.30 | |
| Abatement | €0.68 * 10 = €6.80 | |
| Gross Pension less Abatement | €704.29 - €6.80 = €697.49 | |
| Total Gross Income for week (Pay on return plus Pension less Abatement) | €342.30 + €697.49 = €1,039.79 |
Therefore when abatement is calculated the gross weekly earnings are €1,039.79 v €1,046.59
Amanda is a retired post primary teacher who has returned to do some substitute work covering a maternity leave contract for 24 weeks for 30 classes per week (20 hours per week). She is not entitled to the 50 day waiver as she has taken up a post which will extend beyond 50 days i.e. a maternity leave contract. Amanda’s former pensionable pay is updated to reflect any pay increases since her retirement.
Amanda’s pension will be abated if, (Pay on Return) + (Pension) is greater than (Former Pensionable Pay)
Amanda’s rates are:
| Gross Pay on Return per annum | €45,701 | |
| Gross Pension per annum | €36,118 | |
| Gross Former Pensionable Pay per annum | €74,882 |
Therefore, in Amanda’s case, (Pay on Return) + (Pension) = €45,701 + €36,118 = €81,819.
Since this is greater than Amanda’s former pensionable pay by €6,937, her pension is subject to abatement annually by this amount.
In total Amanda returned for 120 days. All 120 days are subject to Abatement.
To calculate the amount of abatement for each class worked please follow the method below:
| Number of Days in school year | 166 | |
| Pro rata for 40 minute class | 0.0913% (calculated on 4.4 hours per day) | |
| Pay on Return for 1 x 40 minute class | €41.73 | |
| Pension for 1 x 40 minute class | €32.98 | |
| Former Pensionable Pay for 1 x 40 minute class | €68.37 |
Therefore 1 x 40 minute class is €41.73 + €32.98 = €74.71. As €74.71 is greater than the Former Pensionable Pay of €68.37, the Pension is abated for €6.34 for each 40 minute class worked, which results in a weekly abatement with 30 classes taught of €190.20. The total abatement for 24 weeks is €4,564.80.
The table below sets out the Gross Pay on Return less Abatement for 1 week:
| Gross Pay on Return | €41.73 * 30 = €1,251.90 | |
| Abatement | €6.34 * 30 = €190.20 | |
| Gross Pension less Abatement | €692.18 - €190.20 = €501.98 | |
| Total Gross Income for week (Pay on return plus Pension less Abatement) | €1,251.90 + €501.98 = €1,753.88 |
Therefore when abatement is calculated the gross weekly earnings are €1,753.88 v €1,944.08
Department of Public Expenditure and Reform Circular Letter 24/2022 – Guidance on the application of Abatement of Public Service Occupational Pensions under Section 52 (1) to (5) of the Public Service Pensions (Single Scheme & Other Provisions) Act 2012
This Circular contains further details on the application of abatement and further examples.
Every effort has been made to ensure the accuracy of this information. In the event of an error or omission the provisions of the Scheme(s) will govern.