Ireland's minimum wage will rise from €8.65 (US$10.02) to €9.80 (US$11.35) an hour from the start of next year, while the Universal Social Charge (USC) for middle earners will fall by 0.25% to 4.5%, according to the Minister of Finance.
In his maiden Budget speech, Paschal Donohoe indicated that a total of 151,800 workers will benefit when the current €9.55 (US$11.06) an hour rate rises by 25 cents on 1 January 2019, the Irish Independent said. It is the fourth successive annual pay hike for the country's lowest-paid workers since the Low Pay Commission was set up.
Donohoe said he was making “some modest changes” to support minimum-wage workers. He also raised the ceiling of the second USC rate band from €19,372 (US$22,437) up to €19,874 (US$23,018). The aim was to ensure the salary of full-time workers on the minimum wage would remain outside the top rates of USC, he explained.
But Labour employment spokesman Ged Nash warned the government was some way off achieving its commitment to increase the minimum wage to €10.50 (US$12.16) an hour – in fact, the move could be two or three more budgets away, based on the current rate of increase, he said.
"I'd be concerned at its capacity to do that," Nash added. "I don't believe the national minimum wage is anywhere close to adequately meeting people's genuine needs."
He claimed that minimum wage workers would gain just 15 cents a week from the USC changes. The new 4.5% rate of USC will apply to incomes of between €19,874 (US$23,018) and €70,004 (US$81,078).
Meanwhile, the point at which people enter the higher 40% rate of income tax will rise by €750 (US$869) to €35,300 (US$40,884) in the case of single workers. This means the top marginal tax rate on incomes up to €70,000 (US$81,073) will be reduced to 48.5%.
The level for the higher rate of employer’s Pay Related Social Insurance will be increased from €376 (US$435) to €386 (US$447), according to the Irish Times.
The home carer’s tax credit will likewise rise by €300 (US$347) to €1,500 (US$1,737. For self-employed workers, the earned income tax credit will jump by €200 (US$232) to €1,350 (US$1,564).
The parents of every child under a year old will also receive two weeks’ parental leave from November 2019, increasing to seven weeks over the course of a number of years. Meanwhile, the Qualified Child Payment paid to parents on social welfare will rise by €2.20 (US$2.55) per week for under 12s, and by €5.20 (US$6.02) per week for over 12s.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Ireland's minimum wage will rise from €8.65 (US$10.02) to €9.80 (US$11.35) an hour from the start of next year, while the Universal Social Charge (USC) for middle earners will fall by 0.25% to 4.5%, according to the Minister of Finance.
In his maiden Budget speech, Paschal Donohoe indicated that a total of 151,800 workers will benefit when the current €9.55 (US$11.06) an hour rate rises by 25 cents on 1 January 2019, the Irish Independent said. It is the fourth successive annual pay hike for the country's lowest-paid workers since the Low Pay Commission was set up.
Donohoe said he was making “some modest changes” to support minimum-wage workers. He also raised the ceiling of the second USC rate band from €19,372 (US$22,437) up to €19,874 (US$23,018). The aim was to ensure the salary of full-time workers on the minimum wage would remain outside the top rates of USC, he explained.
But Labour employment spokesman Ged Nash warned the government was some way off achieving its commitment to increase the minimum wage to €10.50 (US$12.16) an hour – in fact, the move could be two or three more budgets away, based on the current rate of increase, he said.
"I'd be concerned at its capacity to do that," Nash added. "I don't believe the national minimum wage is anywhere close to adequately meeting people's genuine needs."
He claimed that minimum wage workers would gain just 15 cents a week from the USC changes. The new 4.5% rate of USC will apply to incomes of between €19,874 (US$23,018) and €70,004 (US$81,078).
Meanwhile, the point at which people enter the higher 40% rate of income tax will rise by €750 (US$869) to €35,300 (US$40,884) in the case of single workers. This means the top marginal tax rate on incomes up to €70,000 (US$81,073) will be reduced to 48.5%.
The level for the higher rate of employer’s Pay Related Social Insurance will be increased from €376 (US$435) to €386 (US$447), according to the Irish Times.
The home carer’s tax credit will likewise rise by €300 (US$347) to €1,500 (US$1,737. For self-employed workers, the earned income tax credit will jump by €200 (US$232) to €1,350 (US$1,564).
The parents of every child under a year old will also receive two weeks’ parental leave from November 2019, increasing to seven weeks over the course of a number of years. Meanwhile, the Qualified Child Payment paid to parents on social welfare will rise by €2.20 (US$2.55) per week for under 12s, and by €5.20 (US$6.02) per week for over 12s.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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