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WORKERS SHOULD HAVE more money in their back pocket after budget day, Tánaiste Leo Varadkar has said.
Speaking after Cabinet in Dublin Castle today, Varadkar said public servants and those working in the private sector “will see that number at the bottom of the payslip” increase after October’s budget.
He said this would be “as result of pay increases and tax relief”.
Formal public sector pay talks between the Government and unions have begun at the Workplace Relations Commission. Earlier this year, Varadkar urged employers in the private sector to give their workers a pay increase as the cost of living soars.
His comments today come as Fine Gael senator Regina Doherty proposes a motion to help the “squeezed middle”. It proposes a new middle-income tax rate of 30% for people on middle incomes and that workers wouldn’t go onto the highest rate “until you earn a little bit more”.
Varadkar recently proposed a new middle rate tax band that could help cushion the blow of inflation on the squeezed middle.
Varadkar suggested that a third 30% rate of income tax could help middle-income earners and has asked the Finance Minister Paschal Donohoe to examine whether it could be introduced.
He said there might be a case for having a middle rate of 30% for people on middle incomes so the higher rate of 40% would only kick in for higher earnings.
Speaking on RTÉ Radio today Varadkar said there is a commitment in the programme for Government to index tax bands and credits.
Index tax bands
“So that means there will be a tax package in the budget. That’s not a Fine Gael position, all three parties agree with that,” he said.
He said the average person working full-time in Ireland now earns over €40,000 a year.
The average person in Ireland is going to get a pay increase this year, he claimed.
“The vast majority of people will lose more than half of that pay increase in income tax, PRSI and USC. And we don’t think that’s fair,” he said.
“And that’s why we’ve got that commitment to having a tax package in every budget… This is very much about rewarding work and making work pay and saying to people, that if you’re working hard and you get a pay increase, you should be able to keep most of that. I don’t see why anyone could possibly object to that position, although for some reason, on the left and some in the opposition, they do,” he said.
“I’m not saying that this should be the main feature of the budget”, he added, stating that there will also be a welfare package.
“Because of course, pensions and welfare payments have to increase,” he said.
He criticised Sinn Féin and other opposition parties who are not in favour of income tax changes, stating that workers’ pay increases could be gobbled up by tax that is returned to the Government coffers.
“And I don’t think that’s right,” he said.
Public transport
In terms of public transport, Varadkar said the reductions in fares has been a success, stating that government will now have to decide if such fare reductions can continue.
“And I hope we can,” he said.
He added that Ireland is a rural country, and reductions in public transport fares does not always benefit those living in the countryside, so Government will have to ensure that those in rural Ireland are looked after also.
Asked about the rising cost of petrol and diesel, the Tánaiste said that everyone can see that the numbers are going up. He said in other countries in Europe, the cost is as high as €2.50 per litre in some countries, but claimed it is lower in Ireland due to the Government reducing taxes.
Rather than chase inflation, Varadkar said the Government wants to addressing things it controls, like welfare rates, pension rates, tax, childcare costs as well as the college fees and healthcare costs.
Solidarity-People Before Profit TD Richard Boyd Barrett has hit out against the Government for not taking further action to ease the cost-of-living.
“We are going to see a major movement of people power on the streets to try and force them to take the action that so far, they’re refusing to take,” he said.
A cost-of-living protest is due to take place in Dublin this weekend.
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If only he was in government he could do something about this. Isn’t this the definition of populism that he criticises Sinn Fein for. It’s like he has seen the opinion polls and is running scared.
@Leo’s Spin Department: giving out about the high tax take in Ireland like a bloke down the pub with no input,then the compulsive sly dig at SF but never any other political party..same old Leo..the polls must devestate him
@Brian Burns: The usual FF/FG shills are not around the comments sections. They must be gone on a 3 day week.
Then get rid of the USC Leo, like you said you would.
Leo acknowledges that the average person only earns over €40,000 a year.
Average house price nationwide is over €300,000. That’s 7.5 times the average salary. So the average person can’t buy a home.
Hopefully SF do get into power to put all TD salaries down somewhat so TDs realise real life.
@Dean: average single wage is €49k and a house is normally for more than one person. It isn’t a good situation but no need to exagerate and make it sound worse
@Craic_a_tower: average single wage is 49k ?? That is a downright lie.
@Craic_a_tower: 49k per annum is approx €940 per week….sorry but that is not an average wage, so stop spinning ur fffg clap trap.
@Patricia O’Brien: “• Average annual wages Ireland 2000-2020 | Statista” https://www.statista.com/statistics/416212/average-annual-wages-ireland-y-on-y-in-euros/
@Craic_a_tower: I couldn’t give a monkeys what some statistics say… 49k is NOT the average single wage of a nurse, a shop worker a driver, a cleaner, a hairdresser, a care worker, and numerous other roles… if u know of anyone of them on 49k then they are few and far between.
@Patricia O’Brien: why, do you not like facts?
@Mark: not mis leading ones no… 49k is NOT the average wage of the average working man/woman.
@Craic_a_tower: Statista wouldn’t be the most reliable source, and I’m not saying this source is correct, but it shows the discrepancy in the salary quotes. http://www.salaryexplorer.com/salary-survey.php?loc=104&loctype=1
@Patricia O’Brien: it literally IS the average… Certainly not the median, but definitely the average
@Mark: Fact, im on 35,000 a yr & that’s with bonuses. That’s a far cry from 49k Many of my friends are on around the same as me. We’re your average Joe public.
@Patricia O’Brien: The average wage means nothing. Billionaires income will push the average wage through the roof. Median wage is a more accurate reflection. The median wage for public workers is around 47k while the median wage in the private sector is about 32k.
@John Barry: it doesn’t surprise me that people who don’t understand or accept average wage statistics earn below it. For all the talk of people in ivory towers not understanding there are equally people who don’t know or understand people at a different earning level to them. If all you know is people earning below the average wage you may think that is all there is and you are average. Reality is you are not average on wages you are significantly below that. Doesn’t matter what you think it is just fact
@Patricia O’Brien: so which is it I am a liar or you don’t care about facts?
@Craic_a_tower: average and median are two completely different things. A few high level earners will distort that figure enormously.
@kevinhunt101: I know exactly what they are and never said anything to suggest I didn’t. I learned it in primary school as everyone else would have been taught then too. You may have noticed the person I was replying to used “average” for wage and house price so the same distortions if used correctly.On large samples average is not far off median generally. The OP used a median figure and called it average for wages while using an average house price. Incorrect use either intentional or unintentionally but either way the statement was not true and exaggerating reality. Given SF support in the comment I think it was intentional misrepresentation of facts but they could be spouting a lie told to them
The average person or people in ireland earn an average of €40000 a year. Nice average. Shows how out of touch they are on average
@Brian Martin: is it not the average
@Brian Martin: The *average* earnings in Ireland for 2020 were approx €49k however this figure is skewed by high earners and thus the *median* earnings figure is more reflective of what people generally earn.
The median earnings in 2020 were indeed €40,579. This means that half of all people earned more than €40.5k and half of all people earned less than €40.5k.
@Kevin Collins: you are taking references from a year where working from home was essential because the rest of the country was in lockdown so dont think it was a coincidence the highest earners were in information and communication sector and the lowest were in accommodation sector didnt see a hole lot of mentions about any other sector as I would know a lot of people in different sectors and they are living week to week never mind being on 40/49k a year maybe
@Ryan Armstrong: Click on a few of the tables at that link for lots more info on other sectors, breakdown by age / education etc. The figures for 2019 are very similar and tell the same story; i.e. that age / experience and qualification / skill level are the most important factors that influence earnings – unskilled manual labourers like cleaners and hotel porters were poorly paid before COVID (i.e. below the median) while qualified services professionals like accountants and IT technicians were well paid (i.e. above the median). This has always been and will always be the case.
@Ryan Armstrong: Re your perception that the overall figures are not representative of your own peer group, I would hazard a guess that you and your friends are about the same age and less than half way into your careers so have not yet reached your maximum earnings potential. Think about what a 25 year old and 65 year old in your industry earn for example. Then think of the peers you have at each of those ages and consider what the average incomes across these differing peer groups will look like. In any case, I’d be very surprised if you actually know what your friends are truly earning considering the societal taboo in Ireland in talking about financial matters in general!
Sounds like a great appeal to the masses but let’s see some results first.
Also build some affordable house and apartments while you’re at it and then we’ll consider your party for re-election.
Unless Varadkar can give everyone a tax cut that completely offsets inflation, fuel price hikes, carbon taxes etc. then he is talking nonsense.
Another media friendly love in with lovely Leo who is currently under garda investigation
They create the mess, including the housing catastrophe, and then want a pat on the head for perhaps maybe sort of leaving a couple of euros extra in our pockets… he thinks it’s not ‘right’ to take a measley pay increase in tax , give me a break, theres so much that’s ‘not right’ with what fffg (one party) have done in the last 10 years I can’t even begin.
Leo discovered a long time ago that it’s the occasional soundbite, however meaningless, not backing it up that’s enough to succeed in politics.
I only hope people can see through him.
Wow Leo and company only discovered this now, welcome to the Real world of the poor people who have to budget week in week out and get very little help from anyone
Gotta love how he tries to distance himself from being the cause of all of said taxes…’Its not right that those other guys are taxing the hoop out of you…But I’m sound’
It’s not right Leo but it’s okay in your book.
Summer weather is great for flying kites. Loads around government buildings these days.
Simple answer:
1 scrap USC
2 put the 700k workers not currently in the tax net in. This is too many not paying any tax in a population of 5.8 million with 1.8 million on dole or other payments.
3 bring in incentives for those actually working.
When you consider these figures only 2 million people are paying for the other 3.
Easy to see thru the ruse. He says do the 30% thing, knows and even says it’ll get gobbled up anyway, then says they’ll bring in measures to deal with that over the course of following budgets. So when a GE comes along he’ll say we have to vote for them so they can do those measures in the future. Then once in, he won’t do em. The sad thing is, it’s a classic tactic that just seems to keep working. People don’t remember, or wanna remember or somethin. So they keep doin it. Even Phil hogan said of it before in an interview “but sure isn’t that what ya do in the run up to elections?”. I hope people will finally see thru it
More populist bull from Leo. Who is going to pay for all those social benefits he wants. It is either the people or the corporations. Raise the corporate tax, dummy.
I’d need to work an extra 24 hours a week to get to the median.
Well then PhUcKin Do it ya Ku.nt,.
The pay gap between the highest and lowest needs to be much smaller. Every person is needed whether it be the refuse collection/ kitchen porters etc or the Teacher/ Solicitor etc. It’s so important we genuinely respect each and every person and respect the work they do.
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