Finance & Irish taxes · Calculator companion · By K Imports
PAYE vs contractor vs umbrella: practical guide
This guide explains how to use the Count.ie paye vs contractor vs umbrella. Compare 2026 take-home pay as a PAYE employee, a sole-trader contractor or a PAYE umbrella worker. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written . Supporting content updated ; this is not a renewed rules verification.
Open the PAYE vs contractor vs umbrella calculatorUnderstand the inputs
- PAYE job: annual gross salary offered (€)
- Numeric input; minimum 0; maximum 1000000000000.
- Employer PRSI rate (%)
- Your assumption, not a verified universal 2026 rate; confirm the rate and any exemption with payroll. Used for the PAYE employer cost and the umbrella salary solve.
- Other fixed employer costs per year (€)
- Employer pension, insurance or levies. Also deducted from the umbrella budget.
- Umbrella: annual assignment budget paid to the umbrella (€)
- What the client pays in total, excluding VAT. Fee and employer costs are deducted before gross salary.
- Umbrella annual fee (€)
- Numeric input; minimum 0; maximum 1000000000000.
- Sole trader: annual invoiced turnover excluding VAT (€)
- Numeric input; minimum 0; maximum 1000000000000.
- Sole trader: annual allowable business costs (€)
- Only costs wholly and exclusively for the trade.
- Age reached in 2026
- Numeric input; minimum 18; maximum 64.
The calculation method
PAYE and umbrella use the existing 2026 PAYE model; umbrella gross salary is (budget − fee − other employer costs) ÷ (1 + employer PRSI). Sole trader uses the existing 2026 sole-trader model on turnover less allowable costs.
Worked example
Illustrative inputs and their result.
Example inputs
- PAYE job: annual gross salary offered (€)
- 70000
- Employer PRSI rate (%)
- 11.25
- Other fixed employer costs per year (€)
- 0
- Umbrella: annual assignment budget paid to the umbrella (€)
- 95000
- Umbrella annual fee (€)
- 1200
- Sole trader: annual invoiced turnover excluding VAT (€)
- 95000
- Sole trader: annual allowable business costs (€)
- 6000
- Age reached in 2026
- 35
Calculated example result
- Paye Net Annual
- €50,200.93
- Umbrella Net Annual
- €57,040.14
- Sole Trader Net Annual
- €59,278.01
What changes the result?
These computed examples change one input from the worked example above; the other inputs stay the same. They illustrate this model, not a forecast, entitlement or recommended setting. Input units are those in the input guide.
PAYE job: annual gross salary offered (€): 70000 → 84000
- Paye Net Annual
- €50,200.93 → €56,889.88
Employer PRSI rate (%): 11.25 → 14
- Umbrella Net Annual
- €57,040.14 → €56,068.70
Assumptions and sources
Employer PRSI is your own assumption (default 11.25%, unverified). Cash comparison only for a single person aged 18–64 with standard credits. Salary and invoiced turnover are separate contracts. Employment rights, pension, sick pay, redundancy and employment-status checks are not equivalent. VAT, accountancy fees, capital allowances, losses and umbrella expense schemes are excluded.
Sources and further information
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.
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Try the example while reading
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