Minister for Finance Paschal Donohoe and Minister for Public Expenditure and Reform Michael McGrath today unveiled Budget 2022. A €4.7 billion package, its purpose is to tackle the rising cost of living.
Here, we look at the key points employers need to be mindful of.
Employment Wage Subsidy Scheme
Minister for Finance Paschal Donohoe confirmed that the Employment Wage Subsidy Scheme (EWSS) income support will be extended until the end of April 2022. However, a two-rate structure of €151.50 and €203 will apply from December until the end of February, falling to €100 for March and April.
A reduced rate of employers’ pay related social insurance (PRSI) will no longer apply for the final two months of the EWSS, with the scheme closing to new applicants from January 1st, 2022.
Working from home and tax reliefs
There will be an income tax deduction of 30% of the cost of vouched expenses for broadband, electricity and heating in respect of costs incurred while working from home.
The 9% VAT rate for the hospitality sector will remain in place until the end of August 2022.
Childcare and parents
A €100 million childcare package has been included in Budget 2022. Frances Byrne, Director of policy at Early Childhood Ireland, has said the package could transform the sector and provide the flexibility that families need as workplaces move to hybrid working.
Parents Benefit will increase by two weeks to seven weeks from July 2022, while a universal subsidy for parents has been extended to all children aged under 15 to help meet the costs of childcare.
Furthermore, the Back to School Allowance will increase by €10.
National minimum wage and jobseeker’s allowance
Finally, the Budget confirmed that the national minimum wage hourly rate of pay will increase to €10.50.
Working age welfare payments, including the jobseeker's allowance, will also rise by €5 a week.
Do you have questions about Budget 2022?
For answers to your Budget 2022 questions, speak to an expert now on 0818 923 923.
