The minister for Finance, Paschal Donohoe has today delivered his Budget for 2019.

The income threshold at which the 40% income tax rate kicks in – will rise by €750 to €35,300 from €34,550 for a single earner. (Worth €150 a year).

It will increase from €43,550 to €44,300 for married one earner couples.

The 4.75% rate of the Universal Social Charge will be cut to 4.5% . (This is the rate on incomes between €19,300 and €70,000).

The ceiling of the second USC rate band will be increased from €19,372 to €19,874 in order to ensure that the salary of a full-time worker on the minimum wage will remain outside the top rates of USC.

The tax credit for self employed people will be raised by €200 from €1150 to €1350.

As a result of these changes, the marginal rate of tax for those earning up to €70,044 will be reduced to 48.5%.

The National Minimum Wage will increase by 25 cent from €9.55 to €9.80 gross per working hour in respect of hours worked on or ‪after 1st January 2019.

The Budget provides for 2 additional weeks paid parental leave per parent (paid by the DEASP) to be introduced in November 2019 which must be taken during the first year following the birth of a child.

The employer PRSI Class A reduced rate has increased form 8.6% to 8.7%. The employer PRSI Class A Higher Rate has increased from 10.85% to 10.95%.


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