The three rules
Everyone is assessed the same way.
- Income. You contribute 80% of your weekly income after tax and certain deductions. Pensions, social welfare and rent from other property all count.
- Assets. You contribute 7.5% of the value of your assets each year. The first €36,000 is not counted (€72,000 for a couple). Savings, shares, property, land and anything given away in the last five years are all assets.
- The family home. The home is counted for three years only. After that it drops out and your contribution falls.
A worked example
Mary is 80 and single. She has a State pension of €320 a week and a private pension of €80, so €400 a week in total. She has €50,000 in savings and her house is worth €250,000. The nursing home charges €1,200 a week.
- From income: 80% of €400 = €320 a week
- From savings: €50,000 less the €36,000 allowance is €14,000. 7.5% of that is €1,050 a year, or €20 a week
- From the home: 7.5% of €250,000 is €18,750 a year, or €361 a week, for three years
Mary pays about €701 a week for the first three years and the HSE pays the remaining €499. After three years the home is no longer counted and Mary pays about €340 a week.
Things that change the figure
Being one of a couple roughly halves every part of the calculation, because you are assessed on half the combined figures. Rent from the family home is not counted at all. If your assessed contribution is higher than the nursing home fee, you pay the fee and receive no State support at that home. And the part that comes from property does not have to be paid now: the nursing home loan lets it wait until after death.
Questions families ask
Do I pay the same amount in every nursing home?
Yes. Your contribution is fixed by the assessment. If you choose a more expensive home, the HSE pays the difference, up to the agreed rate for that home.
Is there a minimum I will pay?
No. Someone with a small pension and no assets pays 80% of that pension and nothing else.
Can the figure go down later?
Yes. It falls after three years when the home stops being counted, and you can ask for a review if your income or assets change.