Budget 2022 Key Points For Employers

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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.

performance management

  • 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.

  • VAT Rate

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

  • 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.

  • 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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