THIS YEAR WE were well briefed that the Budget was not going to be one to get too excited about, and now that the announcement has officially been made, that has been confirmed. 

If you are a PAYE worker, you’ll likely be wondering how today’s announcement will change things for your household finances. The answer is, not much.

If anything, with the absence of one-off measures like extra child benefit and energy credits, you may find yourself more strapped for cash than last year.

Here’s what Finance Minister Paschal Donohoe has just announced in relation to income tax: 

The minimum wage will increase by 65c per hour to €14.15 per hour. 

Alongside this, some tweaks will be made to USC to ensure these workers aren’t pushed into higher tax bands. 

The 2 per cent rate USC rate band will increase by €1,318 to €28,700. 

There are no changes to the 20% and 40% tax bands as has happened in previous years, which explains why you’re not seeing The Journal‘s Budget calculator this year, or any articles about what the Budget means for people earning specific salaries – there simply won’t be any changes.

As The Journal reported over the weekend, because of inflation, the average worker will see an effective tax rise as a result of this Budget.

It’s worth noting that the Irish Fiscal Advisory Council highlighted last week that the money the Government is using to cut hospitality VAT could “increase the standard rate income tax bands by €3,000” to €47,000.

In real terms, that means a person earning over €47,000 would have had an extra €600 per year in their pay packets.

The Finance Minister has argued today that the hospitality VAT cut will support businesses and more than 150,000 jobs in the sector.