What’s in Budget 2021 for the Employees?
Minister for Finance Paschal Donohoe unveiled Budget 2021 yesterday afternoon.
The main points from the Budget for employees are as follows:
- Income Tax: There are no changes to the standard or higher rate income tax bands.
- USC: the ceiling of the 2% band will increase from €20,484 to €20,687, which means the standard salary of a full-time worker on the minimum wage will remain outside the USC’s higher rate.
- PRSI: the weekly income threshold for the higher rate of employer’s PRSI will increase from €394 to €398 which should greatly assist lower paid full-time employees
- Working from Home: additional items such as the cost of broadband may be covered as an allowable home expense for tax relief for remote working. Other vouched expenses may also be covered where they are “wholly, exclusively and necessarily” part of the employees work and the employer does not make payment towards the expense.
Further information will follow from the Revenue.
*Please note that this Budget Summary is merely a guide and should not be used as a substitute for professional advice taking into account your individual circumstances.