Budget 2017 saw the announcement of a reduction to the three lowestUniversal Social Charge (USC) rates by 0.5% (i.e. 1% rate cut to 0.5%,3% rate cut to 2.5% and 5.5% rate cut to 5%). Incomesof €13,000 or less will remain exempt from USC. The bandingceiling for the reduced 2.5% rate of USC will increase to €18,772.
The minimum wage will increase by 10 cent per hour to €9.25 fromJanuary 2017. This increase had already been recommended by the Low PayCommission.
Of interest to employers and employees alike will be the increase to theState pension of €5.00 per week from March 2017 and a Single Affordable Childcare Scheme whichwill take effect from September 2017. In summary, thisscheme will involve parental means-tested subsidies of up to €80.00 permonth or €900.00 per year for children aged 6 months to 15years.
The Minister also indicated that an announcement will be made in Budget2018 in relation to employee incentive schemes for SMEs.
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Contributedby CatherineO’Flynn and NualaClayton
