Employment law changes effective 1 January 2016

January 2016

With effect from 1 January 2016, the following changes took effect in the wake of Budget 2016:

Minimum Wage

• The minimum wage increased from €8.65 per hour to €9.15.

 Income Tax

• Earned income tax credit of €550 introduced for self employed.

USC

The entry threshold for USC increased to €13,000. Details of the new rates are set out below:

• €0 to €12,012 – rate reduced from 1.5% to 1%.
• €12,013 to €18,668 – rate reduced from 3.5% to 3%.
• €18,669 to €70,044 – rate reduced from 7% to 5.5%.
• €70,045 to €100,000 – rate remains at 8%.

PRSI

• Tapered PRSI tax credit for employees up to €624 per annum/€12 per week.
• Entry point to the higher rate of employers’ PRSI of (e)10.75% increased to €376 per week.

Pension Levy

• The pension levy of 0.15% abolished.

For more information, contact your usual Whitney Moore contact or Emma Richmond of our Employment Group.