Pay As You Earn (PAYE)
Earned Income Tax Credit
The Earned Income Tax Credit will be increased by €200 from €1,150 to €1,350.
Home Carer Tax Credit
The Home Carer Tax Credit will be increased by €300 from €1,200 to €1,500.
Universal Social Charge (USC)
For 2019, USC will apply at the following rates for those earning in excess of €13,000
|Up to €12,012||0.5%|
Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will pay a maximum rate of 2%.
The emergency rate of USC remains at 8%.
Non PAYE income in excess of €100,000 is subject to USC at 11%.
National Training Levy
The National Training Levy of 0.8% which is collected as part of the employer PRSI contribution will increase to fund further and higher education, the increases are as follows:
Pay Related Social Insurance (PRSI)
With the increase in the National Training Levy which is collected as part of the employer PRSI contribution, employer PRSI will increase as follows:
The weekly threshold for the higher rate of employer PRSI will be increased from €376 to €386.
The rates of PRSI for Class S will remain unchanged but the range of benefits available to Class S contributions will be extended to include Jobseeker’s Benefit in late 2019.
Benefit in Kind (BIK) - Electric Cars
The 0% rate of BIK introduced in Budget 2018 for electric vehicles provided by an employer to an employee has been extended until 2021 with a cap of €50,000 on the Original Market Value of the vehicle.
National Minimum Wage
The National Minimum Wage will increase from €9.55 to €9.80 per hour in respect of hours worked on or after 1st January 2019.
Social Welfare Payments
There will be a €5 increase in all weekly Social Welfare payments with effect from week commencing 25th March 2019. The maximum personal rate of Illness Benefit will be increased to €203 per week. Maternity Benefit and Paternity Benefit will be increased to €245 per week.
Paid Parental Leave
The Budget provides for 2 additional weeks paid parental leave per parent (paid by the DEASP) to be introduced in November 2019. The leave must be taken during the first year following the birth of a child.
Are you missing out on our newsletter? We will not be able to email you without you subscribing to our mailing list. You will be able to unsubscribe at anytime. Don’t miss out - subscribe today!