Budget 2016 – Update

National Minimum Wage

  • From 1 January 2016, the statutory national minimum wage for an adult will increase by 50c to €9.15 per hour.

Paternity Benefit

  • Fathers will be able to apply for two weeks’ leave in respect of births from September 2016.
  • Leave will be paid at a rate of €230 per week, based on the same PRSI contributions required for Maternity Benefit.

Tax and PRSI

  • Reductions in the Universal Social Charge (USC) and PRSI rate changes will have the effect of increasing the take home pay of employees’ equivalent to 1.8%.
  • From 1 January 2016, the entry point for the USC will be raised by nearly €1,000 to €13,000.
    • USC on the first €12,012 of income will be reduced from 1.5% to 1%.
    • The 3.5% rate will reduce to 3% on income from €12,012 up to €18,668.
    • The 7% rate will reduce to 5.5% on income in excess of €18,668 up to €70,044.
  • A new tapered PRSI Credit for Class A employees earning between €352.01 and €424 a week will reduce the weekly PRSI bill for over 88,000 employees.

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