Budget 2016 has no doubt been positive in many respects (apart from for the smokers who will pay 50c more per pack!)
Here is a quick snapshot of the HR Implications from yesterday’s budget:
National Minimum Wage – increased by 50c to €9.15 per hour as of 1st Jan 2016.
Paternity Benefit Scheme – legislate to introduce two weeks paternity leave for fathers from Sept 2016.
Taxation and PRSI – In summary, reductions should have the effect of increasing take home pay for employees up to 1.8% (or a full weeks pay) according to the Minister for Finance.
Pension – Confirmed the ending of the pension levy on pension funds in January 2016, currently at 0.15%.
Other pro-job taxation measures announced include:
- Reduced Capital Gains Tax rate of 20% for successful entrepreneurs
- Income tax credit of €550 for self-employed people, with improvements in future years
- Knowledge Development Box – globally ‘best in class’ and first OECD-compliant scheme, competitive rate of 6.25% on qualifying income, benefits for SMEs, in place from 1st Jan 2016
- Extension of tax relief for start-up companies
- Employment and Investment Incentive scheme to increase availability of investment finance for business.
All round an interesting day, hopefully leading to a positive year ahead and a few more pennies in our pockets!