Overpayments and Underpayments

Under the terms of DEY circular 84/2015, individuals must immediately report instances where they are aware that they may have been overpaid.  Overpayments may be reported through the DEY’s customer service portal. If you suspect you are being overpaid, advice is available from INTO’s query line.

DEY Payroll staff will check to see if you there is an overpayment.  If an overpayment is confirmed, the DEY’s procedure is to send the following details by letter:

1. a) the existence of the overpayment,
2. b) the amount,
3. c) the reason the overpayment occurred,
4. d) the period covered by the overpayment,
5. e) repayment options,
6. f) proposed recovery plan.

You should contact the DEY without delay to agree arrangements for repaying the overpayment.

Generally, overpayments are recouped at a rate of 5% of gross salary per fortnight.  As per circular 84/2015, it is not intended that the operation of the overpayment procedures will cause undue hardship to any individual.  Where a teacher cannot make the fortnightly payment of 5% of gross salary, they may apply to have their case reviewed by an Overpayments Appeal Officer.

It is open to a teacher to pay the overpayment in full by sending a bank draft, cheque or postal order to the DEY.

All of the above information should be included in the DEY’s letter which notifies of the overpayment.

When an overpayment is discovered in the tax year in which it occurred and it is recouped from salary/pension during the same tax year, the gross amount of the overpayment will be deducted from gross salary. Using this method, any pension or statutory deductions owing to the individual will be generated through the payroll.

If the overpayment is recovered during the fifth tax year or later, following the tax year in which the overpayment occurred, the amount of the overpayment recouped is the net value of the overpayment. The net value of the overpayment is calculated by adjusting the gross overpayment by the value of any overpaid Pension or statutory deductions.   If the overpayment is recouped by deduction from salary/pension, it is deducted from net salary. In this case, it will not be necessary to apply to the Revenue Commissioners or the Department of Social Protection for a refund of statutory deductions.

Once your unpaid leave ends and you return to payroll, the amount of the overpayment will be automatically deducted from your next salary payment.   Depending on the value of the overpayment, this may result in you receiving no salary on the first pay date after your leave ends.