Budget Breakdown 2018 - What's in it for Workers?

Budget Summary regarding Employed People Before the budget announcement began at 1 pm, Taoiseach Leo Varadkar said that the Budget 2018 will give an average family with two incomes an extra €500 or €600 a year. Add to that obviously savings in childcare, savings in medicines costs and they may have a little higher than that. Higher Tax Bracket The point at which people enter the higher, 40 percent rate of income tax will rise from its current level of €33,800 by €750 for a single person to €34,550. USC – Universal Social Charge The 2½ percent Universal Social Charge (USC) rate is being cut to 2 percent and the ceiling for this new rate is rising from €18,772 to €19,372. Cuts to income tax and USC are set to save families up to €9 a week. The Minister said that cuts to the USC were to ensure that full-time workers on the national minimum wage of €9.55 per hour do not pay the higher rates. The higher 5 percent rate of USC is being lowered to 4.75 percent, which the Minister said would reduce the top marginal rate of tax on income up to €70,044 to 48.75 percent. Families and individuals across the country are set to save in the order of up to about €468 a year come next January. The biggest gains look set to go to those earning €14,500 or less. Changes mean that those benefiting from the 3.24 percent increase in the minimum wage to €9.55 an hour will see their USC charge fall from €210 to €191. However, their tax burden will also rise due to increased earnings, which means that they will be up by just €6 a week. Those earning up to €70,444 will also benefit from a further cut to the 5 percent rate, which will drop back to 4.75 percent. This means that a single person earning €30,000 will be up by just €2 a week, someone on €55,000 will be up by €6 and someone earning €150,000 will be up by €6. A married couple on the minimum wage, on the other hand, will see savings of €8 a week, while the savings will be the same for other couples. A married couple with one income will do better, with savings of €9 a week for an earner on the minimum wage, €7 for a couple on €30,000 and €8 for a couple on €55,000 and above. Self Employed For the self-employed, the earned income credit will increase by €200, bringing it to €1,150 per year from next year. FIS – Family Income Support The threshold for receipt of the Family Income Supplement rises by €10 per week for families with up to three children. Jobseekers’ Transitional Scheme The Jobseekers’ Transitional scheme is rising by €20 per week. Diesel & Petrol There will be no change to the taxes on diesel or petrol. Further Information:

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