How much does Fair Deal cost?
Your weekly contribution under Fair Deal is calculated, not negotiated. It comes from a financial assessment of your income, assets, and allowable deductions. Here's what each part means in practice.
The headline formula
Your weekly contribution = 80% of your assessable weekly income + 7.5% of your assessable assets, divided by 52.
For a couple, the assessment is on half of joint income and assets. So the formula effectively becomes 40% of joint income + 3.75% of joint assets per year.
1. Income that counts
The HSE assesses every regular income stream. The most common are:
- State pension, occupational pension, foreign pension
- Employment, self-employment, trade, profession, vocation
- Rental income (principal residence rental during care, plus other property)
- Income from holding office or directorships
- Fees, commissions, dividends, interest
- Settlement / covenant / estate / maintenance payments
- Royalties
- Income transferred to another person within the last 5 years (yes, it counts back)
- Farming or business income
- Any other "non-Irish" income
DSP allowances and benefits are entered separately so the HSE can apply the relevant disregards.
2. Allowable deductions (income side)
You can subtract these before the 80% calculation:
- Income tax, USC, PRSI
- Health expenses (net of tax relief)
- Interest on loans related to your principal residence (mortgage interest, home-improvement loans — capital repayments are not allowed)
- Rent payments (if you live in rented accommodation)
- Maintenance you legally pay to another person
- Levies required by law (Local Property Tax, household charges, refuse charges)
3. Assets that count
"Cash" and "non-cash" are assessed together once the disregard is applied:
- Bank balances (current, deposit, online), credit unions, post office, An Post savings
- ARFs / AMRFs, shares, bonds, securities
- Life insurance / life assurance with an encashment or surrender value
- Money loaned to another person which is repayable
- Your principal residence (only for the first 3 years — see the 3-year cap)
- Any other property, land, farm, business, or valuables
- Cash assets transferred to another person in the last 5 years
- Non-cash assets transferred in the last 5 years (to apply the 3-year cap rule)
4. The asset disregard
Before the 7.5% is applied, the HSE deducts an asset disregard:
- Single person: €36,000
- Couple (combined): €72,000
Anything below the disregard is ignored. Anything above is multiplied by 7.5% per year (or 3.75% per year per person for couples).
A worked example — single applicant
Let's say Mary is single, 78, going into a nursing home. She has:
- State pension of €265 / week
- An occupational pension of €120 / week
- €55,000 in cash savings
- A home worth €350,000 with no mortgage
- No allowable deductions
Income side
Total weekly income = €265 + €120 = €385.
80% × €385 = €308 / week.
Cash assets
€55,000 − €36,000 disregard = €19,000 assessable.
7.5% × €19,000 = €1,425 / year ÷ 52 = €27.40 / week.
Home (years 1–3)
€350,000 × 7.5% = €26,250 / year ÷ 52 = €504.80 / week.
Total weekly contribution
- Year 1–3: €308 + €27.40 + €504.80 = €840.20 / week
- Year 4 onward: €308 + €27.40 = €335.40 / week (the home drops out under the 3-year cap)
If Mary cannot afford the home-based €504.80 from cash flow, she can apply for the Nursing Home Loan in Part 5 — the HSE then registers a charge on the property and the deferred amount is repaid from the estate.
What never counts
Personal possessions, household contents, and the first €36,000 of cash are excluded from the assets calculation. Children's, relatives', or non-spouse household members' incomes and assets are not assessed. Family-owned farms and "relevant businesses" can apply for the 3-year cap in Part 6 if they meet the strict eligibility tests.