2024 Budget - Employer Summary

Pay As You Earn (PAYE)

• There is no change to tax rates for 2024 - the standard rate will remain at 20% and the higher rate at 40%
  
  
• The Standard Rate Cut Off Point (SRCOP) has been increased by €2,000
  
  
• The Personal Tax Credit has been increased by €100 from €1,775 to €1,875
  
  
• The Employee Tax Credit has been increased by €100 from €1,775 to €1,875

Earned Income Tax Credit

• The Earned Income Credit has been increased by €100 from €1,775 to €1,875

Universal Social Charge (USC)

• Exemption threshold remains at €13,000
  
  
• The 2% USC rate band has been increased by €2,840, from €22,920 to €25,760
  
  
• The third rate of 4.5% has been reduced to 4% for 2024.
  
  
• For 2024, USC will apply at the following rates for those earning in excess of €13,000:

05% - Income up to €12,012

2% - Income from €12,012.01 tp €25,760

4% - Income from €25,760.01 to €70,044

8% - Income above €70,044

• 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 will continue to be subject to USC at 11%.

National Minimum Wage

• The National Minimum Wage will increase by €1.40 from €11.30 to €12.70 per hour from January 1st 2024.

Pay Related Social Insurance (PRSI)

• All PRSI contribution rates will be increased by 0.1% in October 2024.

Social Welfare

• There will be a €12 increase in all weekly Social Welfare payments with effect from January 2024. The maximum personal rate of Illness Benefit will be increased to €232 per week. Maternity Benefit, Parent’s Benefit and Paternity Benefit will be increased to €274 per week.

VAT

• The reduced rate of 9% VAT for the gas and electricity will continue to apply until the 31st October 2024.

Extension of BIK Exemption for Electric Vehicles

• The BIK exemption for battery electric vehicles will be extended out to 2025 with a tapering effect on the vehicle value. This measure took effect in early 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023, 2024 and 2025. It will reduce by €20,000 in 2026 and €10,000 in 2027.