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:
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.
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.
The 9% VAT rate for the hospitality sector will remain in place until the end of August 2022.
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.
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?
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