Fair Deal Contribution Calculator: How Much Will Your Parent Pay in Ireland?

The Number That Matters Most — and How the HSE Calculates It

The weekly contribution is the number families worry about most when facing a Fair Deal application. Everything else — the paperwork, the nursing home selection, the loan decision — flows from knowing how much the applicant will actually pay each week.

The calculation has two components: an income portion and an asset portion. Both follow fixed statutory formulas with no discretion on the HSE's part.

The Income Portion

For a single applicant: 80% of assessable weekly income.

For a married or cohabiting couple: 40% of the couple's combined assessable weekly income (this is because the couple's total income is halved for the applicant, then the 80% rate is applied — producing the same result as 40% of the combined figure).

Assessable income includes:

• State Pension (Contributory and Non-Contributory)
• Occupational or private pensions
• Foreign pensions
• Employment earnings
• Social welfare payments (Carer's Allowance, Disability Allowance, etc.)
• Investment income (dividends, interest, rental income from non-PPR properties)

Before the percentage is applied, the following deductions come off:

• Income tax, PAYE, and USC already paid
• PRSI contributions
• Local Property Tax (LPT)
• Mortgage interest on the principal residence
• Rent paid by the applicant's partner or a child under 21 living in the home
• Health expenses not reimbursed by insurance or tax relief

The safety net: The applicant must retain at least 20% of their income, or 20% of the maximum State Pension (Non-Contributory), whichever is greater. This guarantees a minimum personal allowance — nobody is left with zero after the contribution.

The Asset Portion

For a single applicant: 7.5% of the total assessable asset value per year (divided by 52 for the weekly figure).

For a couple: 3.75% of the combined assessable assets per year.

Assets include:

• Cash savings, current accounts, deposit accounts
• Stocks, shares, bonds, investment funds
• Property and land (including the principal private residence)
• Business assets

The statutory disregard: The first €36,000 of assets is completely exempt for a single applicant (€72,000 for a couple). The NHSO applies this disregard to cash assets first, then to property if the cash assets are below the threshold.

The 3-year cap: The principal private residence's contribution is capped at 3 years maximum (22.5% for a single applicant, 11.25% for a couple). After 3 years in care, the home drops out of the assessment entirely.

Worked Example: Single Applicant

Income: State Pension (Contributory) of €277.30/week, occupational pension of €150/week. After deductions (USC, PRSI, LPT): €390/week assessable income.

Assets: Family home valued at €300,000, savings of €25,000.

Step 1 — Income contribution: €390 × 80% = €312/week

Step 2 — Asset disregard: €36,000 exempt. Cash (€25,000) is below the threshold, so the full €25,000 is sheltered. Remaining disregard (€11,000) reduces the home's assessable value from €300,000 to €289,000.

Step 3 — Asset contribution: €289,000 × 7.5% ÷ 52 = €417/week

Step 4 — Total weekly contribution: €312 + €417 = €729/week

If the chosen nursing home's NTPF rate is, say, €1,100/week, the HSE covers the balance (€371/week). The applicant can defer the property portion (€417) via the Nursing Home Loan, reducing the out-of-pocket cash contribution to just €312/week.

Worked Example: Married Couple

Combined income: Two State Pensions totalling €500/week, one occupational pension of €200/week. After deductions: €640/week combined assessable income.

Combined assets: Family home valued at €350,000, joint savings of €60,000.

Step 1 — Income contribution: €640 × 40% = €256/week

Step 2 — Asset disregard: €72,000 exempt. Cash (€60,000) is fully sheltered. Remaining disregard (€12,000) reduces the home's assessable value to €338,000.

Step 3 — Asset contribution: €338,000 × 3.75% ÷ 52 = €244/week

Step 4 — Total weekly contribution: €256 + €244 = €500/week

The staying spouse keeps at least 50% of the combined income (€320/week in this case) or the maximum State Pension (Non-Contributory) rate — whichever is greater.

Why the Result Surprises Families

Two reactions are common:

"It's lower than I expected." The combination of the asset disregard, the income deductions, and the couples' halving rule means many families — especially those with modest savings and pension-only income — end up paying significantly less than the private nursing home rate.

"It's higher than I expected." Families with substantial savings or valuable property in Dublin/Cork face a steep asset-based contribution. But the 3-year cap and the Nursing Home Loan together mean the property portion is both capped and deferrable.

Our Fair Deal filing toolkit includes a contribution calculator worksheet that runs these formulas for your parent's actual numbers — income, savings, property value — and shows the weekly amount both with and without the Nursing Home Loan deferral.

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