The Irish government shared the 2021 budget and plans on how the largest budget package in the history of the State will be spent.
Some key highlights for employers and employees include:
- USC increase of second band @ 2% from €20,484 to €20,687 annual saving of €5.00 per person and ensuring min wage employees remain outside top rates of USC.
- Medical card holders reduced USC rate extended.
- Earned income credit increase from €1,500 to €1,650.
- Dependant Relative Tax Credit increase from €70 to €275.
- Help-to-Buy scheme of €30,000 is being extended to the end of 2021.
- The working from home allowance stays at €3.20 per day, and for those who don’t get paid that, they can now include the cost of broadband in their applications for rebates on heating and electricity costs. 10% relief on annual cost. Further information can be found HERE.
- Employee Wage Subsidy Scheme will continue during 2021 further information will be realised on this in coming weeks.
- The weekly threshold for the higher rate of employers PRSI will go from €394 to €398 to ensure there is no incentive to reduce working hours for a full-time minimum wage worker.
More information on budget 2021 will be released in the coming days and we will continue to add key points specific to businesses and employees here.
To full details on the budget for 2021 CLICK HERE.