On Tuesday, Oct 10, Ireland’s minister for Finance Paschal Donohoe delivered his Budget 2018 speech to the Dáil, Ireland’s National Parliament. The impact to the worker’s wages are minimal, but any changes that have been made are positive and should increase monthly pay nationwide.
The key impacts of Ireland’s Budget 2018 on wages are:
For the second time in a row, the minimum wage in Ireland is set to increase. It will be increasing from €9.25 to €9.55 from January 2018.
There will be a €200 increase in Earned Income Credit for self-employed people in Ireland, bringing it to €1,150 in 2018.
Income tax band
The point at which the higher 40% rate for income tax kicks in will rise by €750 from €33,800 to €34,550. This means an extra €150 a year for those who earn enough to benefit.
USC – Universal Social Charge
There have been cuts to two rates of USC, tax payable on total income, with the changes worth an average of €250.
The main 5% USC rate, which applies on incomes between €18,772 and €70,044, is to be cut by 0.25 to 4.75%.
The lower 2.5% rate is cut to 2% and the band of income to which this applies is widened from €18,772 to €19,372. Overall the impact of Irelands’ latest budget is minimal to most people’s wages, with slight decreases on lower bands of USC being the main point of note. Another point of note mentioned during Budget 2018 is unemployment is at 6.1 per cent, the lowest Ireland’s unemployment has been since 2008. While If you have children, the Irish government has pledged €20 million to extend the free pre-school programme.