EMPLOYEES paying PAYE, can see the immediate impact of the 1997 Budget measures home pay from these tables.
Take the gross annual income closest to your own in the first column, then refer across the table to see how your take home pay will change in 1997/1998.
The impact of the Budget measures on single and taxpayers and on married couples with one spouse earning is shown.
Private and public sector employees are shown separately because public sector employees pay PRSI contributions at a lower 0.9 per cent rate while private sector employees will pay at a rate of 4.5 per cent (down from 5.5 per cent in the current public sector workers the first £20 of weekly income continues to be exempt from PRSI contributions in 1997/98. The first £80 of the weekly income of private sector workers will be exempt from PRSI again next tax year. Lower and middle income workers will benefit most from the PRSI changes.
The increase in the income ceiling for PRSI payments from £22,300 to £23,200 on its own will push up the PRSI bills of all workers earning more than £22,300. But the one point reduction in the PRSI contribution will more than compensate.
PRSI together with the widening of the standard rate tax band, the one percentage, point reduction in the standard tax rate to 26 per cent and increases in personal allowances will benefit all PAYE taxpayers.
In the tax year starting next April, a single worker will be able to earn £13,600 and only pay tax at 26 per cent before moving onto the top 48 per cent tax rate. This year the single worker is paying tax at 27 per cent on income up to £12,850 - and then moves up to 48 per cent.
A married couple with one spouse in employment will move up to the top 48 per cent tax rate when their income reaches £26,400 - this year they moved on to the top rate when income reached £24,900.
The one percentage point reduction in the standard tax rate to 26 per cent is the first reduction in the standard rate since 1993. For people on the current standard 27 per cent rate this will mean an extra £1 per £100 of taxable income. For people who are paying tax at the top 48 per cent rate, the cut in the standard rate will mean a saving of £99 in the next tax year.