The €4,004 yearly exemption is to be applied for to the Revenue only at the end of the year.  It is not to be broken down into weekly/monthly/etc equivalents to be applied in weekly/monthly/etc payroll.  This is different to the Income Levy where the €15,028 was broken down and applied weekly/monthly/etc.   Throughout the year the only thresholds/rates to be applied in payroll are €10,036 @ 2%, the next €5,980 @ 4% and the balance at 7%.  Folks aged 70 or over pay a max of 4%, starting above €10,036. This exemption it has to be applied for at year end to the revenue commissioners by the individual employee.

DISREGARD!

THIS HAS NOW BEEN CHANGED BY DEPARTMENT OF FINANCE TODAY 15 December 2010