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What the Budget means for someone earning around €20,000

How does this change things for you?

shutterstock_200506556 Source: Shutterstock/Grzegorz Placzek

NOW THAT THE weeks of speculation are over, and this year’s Budget has been announced, let’s get specific about what it means for you.

If you’ve been making €20,000 or so, here’s how it breaks down:

Adjustments to the Universal Social Charge (USC) mean an extra €172, or €3.44 more a week.

This comes from Finance Minister Michael Noonan lowering the rates from 1.5 to 1%, 3.5 to 3%, and 7 to 5.5%.

If you’re self-employed, the earned income tax credit of €550 can be added to that.

Adjustments to PRSI will also provide up to an extra €12 a week for workers in this pay bracket:

prsi Source: Budget.gov.ie

Changes to the Home Carer Tax Credit will mean an extra €190 a year for single income families.

If you have children, you’ll get an extra €5 a month from the child benefit, which is being increased from €135 to €140.

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And if you have young children, you’ll likely benefit from the new provision of free childcare from the age of three up to five and a half, or until primary school.

The 0.15% pension levy fund has also been abolished.

If you smoke 20 cigarettes a day, you’ll be spending an extra €182.50 over the next 12 months, after the 50 cent hike in the price of a pack.

For a detailed and comprehensive breakdown of how the Budget will impact your individual circumstances, check out our Budget Calculator.

Read: All the breaking news from today’s Budget>

Read: What the Budget means to someone earning around €40,000>

About the author:

Dan MacGuill

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