With the New Year approaching us there are some payroll changes that will take effect from the 1st January 2022.
National Minimum Wage
The National Minimum Wage (NMW) will increase by 30 cent from €10.20 to €10.50 per hour for hours worked on or after the 1st of January 2022.
Parents Leave
Parents Leave will be increased by two weeks, moving from five to seven weeks, accompanied by Parents Benefit payable by the DSP from July 2022.
Personal Tax Credits
From the 1st of January 2022, the following increases in tax credits will apply.
Single/Widowed Person or Surviving Civil Partner Tax Credit will change from €1650 to €1700.
Married Couple or Civil Partnership Tax Credit will increase from €3300 to €3400.
Employee (PAYE) Tax Credit will increase from €1650 to €1700.
Earned Income Tax Credit will increase from €1650 to €1700.
Tax Rates and Standard Rate Cut Off Points for 2022:
| Single/Widowed person or Surviving Civil Partner |
First €36800 @ 20% Balance @ 40% |
|
Qualifying for the Single person Child Carer Credit |
First €40800 @ 20% Balance @ 40% |
| Married Couple or Civil Partnership - One Income |
First €45800 @ 20% Balance @ 40% |
| Married Couple or Civil Partnership - Two Incomes |
First €45800 @ 20% plus an amount equal to the lower income (subject to a maximun of €27800). Balance @ 40% |
Working from home
Employers can make tax free payments of up to €3.20 per working day to employees working from home. This is to cover the additional costs incurred due to the employee working from home. If the employer does not pay employees this fee, the employee can claim tax relief of 30% of the cost of vouched expenses for light, heat and broadband in respect of the days spent working from home.
