The new min wage

Charisma

I read this on facebook and had to share.

The 50c rise in minimum wage leaves workers worse off. AND the government pocket the whole rise plus more.
PLEASE TAKE A CLOSE LOOK AT THIS.
The government wants to raise the minimum wage.
They want employers to raise the minimum wage by 50 cent from €8.65 to €9.15 per hour.

So that means someone on the minimum wage who works a 39 hour week will get an increase of €19.50 extra pw.
However they now will have to pay
€3.90 in extra PAYE
€14.27 in extra PRSI
€1.35 extra in USC

That's €19.52 in deductions.......

Their take home pay is less now, than is was before the increase by 2 cents.
Oh and the employer gets to pay and extra €9.69 in employers PRSI.

SO WITH A WAGE INCREASE AND PRSI INCREASE THE EMPLOYER PAYS OUT AN EXTRA €29.19 PER WEEK. AND THE WORKER GETS NOTHING.

THE GOVERNMENT TAKES THE TOTAL WAGE INCREASE AND MORE.

The worker loses, The Employer loses BIG TIME, but the government wins so that's ok.
ONLY IN THIS COUNTRY.

Irish_Elect_Eng

Don't belive everything your read on FacePalm Facebook.

Hunchback

Irish_Elect_Eng wrote: »

Don't belive everything your read on FacePalm Facebook.

Is this general advice or a specific rejection of the information in the facebook post quoted by the OP?

Mrs OBumble

There has always been a point like this, just a little about minimum wage X 40, at which PRSI kicks in on the whole amount.

It's very likely that Revenue will raise the thresholds so that the scenario you outline won't happen.

Nody

I hope not because if people are taxed from the start making more money is always a good thing; the current system says if you don't make at least X more you should simply not bother which is not good for the general attitude or economy in general.

Greenmachine

While this is true most people on minimum wage probably only work part time so this will only affect a small percent of people.

testicle

The PAYE/PRSI/USC bands are also changing. Nonsense post by someone who probably refuses to pay for their water.

Charisma

testicle wrote: »

The PAYE/PRSI/USC bands are also changing. Nonsense post by someone who probably refuses to pay for their water.

I already pay for my water through my general taxes, my USC and the extra money put on car tax and extra 2% VAT added to everything I buy since the mid 90s. No intentions of paying again.

Mrs OBumble

No more posts about water charges in this thread, thanks.

If someone could post a link to info re band-changes, that would be much appreciated.

greendom

Mrs OBumble wrote: »

There has always been a point like this, just a little about minimum wage X 40, at which PRSI kicks in on the whole amount.

It's very likely that Revenue will raise the thresholds so that the scenario you outline won't happen.

Yes, currently when you earn under €351.00 per week you pay zero PRSI, but if you earn a cent more then you pay PRSI on the whole amount.

The new rate will push minimum wage employees over that level and force them to pay PRSI where they weren't before.

testicle

Mrs OBumble wrote: »

If someone could post a link to info re band-changes, that would be much appreciated.

http://www.irishtimes.com/business/prsi-reforms-and-minimum-wage-increase-likely-to-go-hand-in-hand-1.2292699