Dáil Éireann Debate, Wednesday - 9 October 2024
64. Deputy Pearse Doherty asked the Minister for Finance the estimated increase in tax and first- and full-year revenue from the €0.80 increase to the minimum wage; the estimated increase of an additional €0.30 to €13.80; and if he will make a statement on the matter. [40541/24]
Amharc ar fhreagraAs I announced in my Budget 2025 speech, as part of a substantial personal income tax package I am increasing the ceiling of the second rate of USC, the 2 per cent rate, to take account of the increase in the National Minimum Wage, which is increasing by €0.80 per hour, from €12.70 per hour to €13.50 per hour, with effect from 1 January 2025. The ceiling of the 2 per cent USC rate band will increase by 6.3 per cent from €25,760 to €27,382 with effect from 1 January 2025. This continues the Government’s policy of ensuring full-time workers on the minimum wage will remain outside the charge to the top rates of USC. It will also be of benefit to other workers whose income is above that amount.
I am advised by Revenue that, as its payroll records do not contain data on either hours worked or the hourly wage, it has no data from which to provide an estimate for an increase in tax or revenue from increases to the national minimum wage.
