Budget 2022 Key Points For Employers
Changes to the pandemic wage subsidy scheme are among some of the key takeaways for employers in the Government’s €4.7 billion spending plan for 2022.
HR Team reviews how the Budget 2022 will affect employers in the coming year.
Key Budget points employers need to be mindful of:
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Employment Wage Subsidy Scheme
The Employment Wage Subsidy Scheme (EWSS) support will be extended until the end of April 2022. However, a structure of two rates (€151.50 and €203) will apply from December until the end of February, being reduced to €100 for March and April.
The scheme will close to new applicants from January 1, 2022. A reduced rate of employers’ pay related social insurance (PRSI) will no longer apply for the final two months of the EWSS.
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Working from home and tax reliefs
There will be an income tax deduction of 30% of the cost of expenses for electricity, heating and broadband in respect of additional costs for employees while working from home.
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VAT Rate
The 9% VAT rate for the hospitality sector will remain in place until the end of August 2022.
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Childcare and parents
A €100 million childcare package has been included in the budget – potentially providing the flexibility that families need as workplaces practice hybrid working.
Parents’ benefits will increase by two weeks to seven weeks from July 2022 onwards, while a universal subsidy for parents has been extended to all children aged under 15 to help meet the childcare costs. The ‘Back to School Allowance’ will also increase by €10.
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National minimum wage and jobseeker’s allowance
Lastly, the national minimum wage hourly rate of pay will increase to €10.50 from January 1, 2022. Working-age welfare payments, including the jobseeker’s allowance, will also rise by €5 a week.
Do you have an employment law question?
We help business start-ups, SMEs and large multinational organisations. Call to speak to us today on any aspect of employment law or strategic human resource services. Tel ROI: 01 695 0749, or from NI: 028 71 271 882. Alternatively, contact us via email: hello@hrteamgroup.com