The former minister for the environment Phil Hogan will be entitled to gross payments totalling more than €336,446 in his first year as European commissioner if successful in his bid for the position.
However, a spokesman for Mr Hogan said last night he will waive separate pension entitlements related to his role as TD and minister, which he would have been entitled once he vacates his Dáil seat.
Mr Hogan said last night that he was “honoured” to have been nominated by the Taoiseach Enda Kenny for the role of European commissioner.
The final decision on whether Mr Hogan becomes a commissioner rests with the European Parliament, which votes on the suitability of candidates nominated by the member states in consultation with the president of the European Commission.
If successful, Mr Hogan, who turned 54 this month, will receive a basic salary of €20,833 a month for the role of commissioner, or €250,000 a year before tax.
In addition to this, new commissioners are entitled to a one-off “installation allowance” of two months’ basic salary, currently worth €41,665, which is not taxable.
And, as well as the basic salary, they also receive a “residence allowance” of 15 per cent of their basic salary of almost €37,500 annually and a further allowance for “representation expenses” totalling almost €7,300 annually, neither of which are subject to tax.
The travel costs and moving expenses associated with Mr Hogan taking up the office will be reimbursed to him.
He may also avail of the “diplomatic” privilege, which means EU officials may be exempted from VAT on certain goods in the year after taking up office.
Mr Hogan’s basic salary from the European Commission is also liable for tax, which is levied in income bands ranging from 8 per cent to 45 per cent. The basic salary also incurs a “solidarity levy” of 7 per cent.
The taxes mean that, on a basic commissioner salary of €250,000, Mr Hogan can expect to pay about €100,000 in taxes.
Commissioners also make pension contributions of 10.3 per cent, as well as sickness, accident and unemployment insurance contributions.
Last night, a spokesman for Mr Hogan said he would waive his entitlement to two Irish pension payments worth a combined €61,000 annually consisting of a gross TD pension of more than €43,000 and a ministerial gross annual pension of over €17,000 related to his three years as minister for the environment.