Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Shutterstock

What will Budget 2019 mean for those earning around €50,000?

There will be some modest savings for earners next year.

MINISTER FOR FINANCE Paschal Donohoe has announced Budget measures for next year, including increased spending on housing, childcare, and the gardaí.

But what impact will today’s announcement have on your pocket?

If your income is anything up to €50,000, here’s how you’ll be affected in the coming year.

Public and private sector staff

The main change for those on middle income earnings is the drop in the Universal Social Charge (USC). These changes will apply from 1 January 2019.

Minister for Finance Paschal Donohoe announced the third rate of USC will be reduced from 4.75% to 4.5% “to give a further targeted benefit to low- and middle-level incomes”.

Donohoe also announced that the second rate of the USC will be increased from €19,372 to €19,874.

So if you’re earning €50,000, you are currently paying USC across three rates, totalling €1,662.

Next year, here’s how it will play out:

  • 0.5% on the first €12,012 = €60.06
  • 2% on up to €19,874 = €157.24
  • 4.5% on the remaining up to €50,000 = €1355.67

This means your USC payment next year will total about €1,573.

The reductions will result in an €89 saving in USC for both public and private sector workers.

An increase of €750 in the income tax standard rate band for all earners was also announced.

A rise from €34,550 to €35,300 will apply to single individuals and from €43,550 to €44,300 for married one-earner couples, saving earners €150.

Total saving: €239.

Self-employed workers

A self-employed person earning around €50,000 will also benefit from the €89 USC saving above.

Self-employed people have been given a €200 increase in Earned Income Credit, which Donohoe said would affect around 150,000 workers.

This means an extra €200 saving in income tax for these earners.

Total saving: €289

Other

The government announced a €5 increase in all social welfare payments from March next year, including parents who will see a rise in Child Benefit payments.

Parents will also receive two extra weeks’ paid leave for the first year after their children are born, on top of maternity and paternity leave options already in place.

However, a 50% increase in VAT for the hospitality sector means you’ll probably be paying more for haircuts and meals out.

And smokers will pay more for cigarettes, while there will also be a 1% surcharge for diesel vehicles to apply across all VRT bands.

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
27 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Install the app to use these features.
    Mute Joan Featherstone
    Favourite Joan Featherstone
    Report
    Feb 13th 2014, 8:58 AM

    What a super gesture and that hotel is in a beautiful spot. Well done!

    623
    Install the app to use these features.
    Mute Robbie Doyle
    Favourite Robbie Doyle
    Report
    Feb 13th 2014, 9:03 AM

    This is the type of spirit we should be working towards and aspiring to as a country rather than promoting peoples apparent selfishness.

    389
    Install the app to use these features.
    Mute Neal •IntoYourHead
    Favourite Neal •IntoYourHead
    Report
    Feb 25th 2014, 11:09 AM

    Okay, relax there and stop judging us all.

    1
    Install the app to use these features.
    Mute Alison Irving
    Favourite Alison Irving
    Report
    Feb 13th 2014, 10:46 AM

    Yesterday evening getting on the bus I realised there was no money on my Leap card & I didnt have enough change for the fare – bus driver let me off with the extra because he “couldn’t leave you out there in that weather”. Thanks Dublin Bus!!

    375
    Install the app to use these features.
    Mute Ryan Freeman
    Favourite Ryan Freeman
    Report
    Feb 13th 2014, 9:21 AM

    Session!

    132
    Install the app to use these features.
    Mute Darren Callaghan
    Favourite Darren Callaghan
    Report
    Feb 13th 2014, 10:00 AM

    Power Cut, lock in at the Glendalough Hotel during a storm, damn it why didn’t I buy house in Laragh

    110
    Install the app to use these features.
    Mute Sean Scanlon
    Favourite Sean Scanlon
    Report
    Feb 13th 2014, 1:57 PM

    I did

    15
    Install the app to use these features.
    Mute Daisy Chainsaw
    Favourite Daisy Chainsaw
    Report
    Feb 13th 2014, 11:03 AM

    Whitford House Hotel in Wexford posted something similar. I don’t know if they provided any freebies, but there are worse places to while away a bad evening!

    (*not related or affiliated. I just like the place.)

    100
    Install the app to use these features.
    Mute aisling doyle
    Favourite aisling doyle
    Report
    Feb 13th 2014, 11:55 AM

    Love it too :) always a great place to go — great to see people been nice

    39
    Install the app to use these features.
    Mute Shanti
    Favourite Shanti
    Report
    Feb 13th 2014, 11:26 AM

    I saw a lot of these types of gestures on Facebook last night – including this one..
    Nice to see that sense of community is still with us.. Unlike the garden furniture and a few sheds..

    76
    Install the app to use these features.
    Mute Deborah Carroll
    Favourite Deborah Carroll
    Report
    Feb 13th 2014, 4:43 PM

    Lovely to see them helping out, unlike a certain shop in Newcastle West charging 80 euro for a camping stove this morning…

    40
    Install the app to use these features.
    Mute Neal •IntoYourHead
    Favourite Neal •IntoYourHead
    Report
    Feb 25th 2014, 11:11 AM

    That seems quite reasonable for a camping stove.

    1
    Install the app to use these features.
    Mute Barry Aston
    Favourite Barry Aston
    Report
    Feb 13th 2014, 3:17 PM

    Great hotel in all truth. Used to lack a bit years ago but is now top notch. Spent 4 days there last week. They are sound staff and the chef is fairly handy too.

    38
    Install the app to use these features.
    Mute Jacinta O'Shaughnessy Foley
    Favourite Jacinta O'Shaughnessy Foley
    Report
    Feb 13th 2014, 10:32 AM

    Brilliant marketing stategy!

    37
    Install the app to use these features.
    Mute Mary Blake
    Favourite Mary Blake
    Report
    Feb 13th 2014, 5:37 PM

    Fantastic well done we all need a little help sometimes

    23
    Install the app to use these features.
    Mute AICS (Steve Tracey)
    Favourite AICS (Steve Tracey)
    Report
    Feb 13th 2014, 7:29 PM

    Possibly was a marketing, PR strategy. Does that make it any less pf a good thing? I supposevsome people will always find a way of belittling helpful actions.

    19
    Install the app to use these features.
    Mute David Giles
    Favourite David Giles
    Report
    Feb 14th 2014, 6:02 AM

    Virtue brings its own reward.

    8
    Install the app to use these features.
    Mute Gerard Creedon
    Favourite Gerard Creedon
    Report
    Feb 13th 2014, 12:28 PM

    Great thinkin can’t lose wit dat PR !!

    11
    Install the app to use these features.
    Mute Gobblor
    Favourite Gobblor
    Report
    Feb 13th 2014, 3:48 PM

    wit dat?

    Red thumb for being a moron.

    23
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.

Leave a commentcancel

 
JournalTv
News in 60 seconds