National Minimum Wage
- From 1 January 2016, the statutory national minimum wage for an adult will increase by 50c to €9.15 per hour.
- 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.
- KPMG – Taxes and Credits 2016
- CIPD – HR Update: http://bit.ly/1MyR7H2
- For a more personal assessment, check out the KPMG 2016 Tax Calculator
- Contracting Plus – Tax Facts & Figures