A brief overview of the main updates and adjustments in relation to payroll & related services, including COLA, Minimum Wage, Vacation Leave Entitlement, Tax Rates and Social Security Contributions for 2022, is set out below.
COLA
The Cost of Living Adjustment (increase) is €1.75 per week (€91.00 per annum) for full-time employees. This is pro-rated in the case of reduced working hours.
Minimum Wage
As of 1 January 2022, the national minimum weekly wage for whole-time employees is as follows:
18 years of age and over |
€182.83 |
17 years of age |
€176.05 |
| Under 17 years of age | €173.21 |
The national minimum weekly wage for part-time employees should be calculated on a pro-rata basis at the same hourly rate as that applicable to comparable whole-time employees.
Sectoral minimum wages may be applicable depending on circumstances and other considerations.
Vacation Leave Entitlement
In 2022, an employee with a 40-hour working week will be entitled to 224 hours of paid vacation leave; that is, the 192 hours basic leave entitlement plus 32 hours in lieu of the four Public Holidays that fall on weekends.
The entitlement should be pro-rated in the case of reduced working hours.
Tax Rates
The table below sets out the income tax rates on chargeable income for basis year 2022.
Single Rates |
|||
| Chargeable Income | |||
| From | To | Rate | Subtract |
| €- |
€9,100 |
0% | €- |
| €9,101 |
€14,500 |
15% |
€1,365 |
| €14,501 |
€19,500 |
25% |
€2,815 |
| €19,501 |
€60,000 |
25% |
€2,725 |
| €60,001 |
and over |
35% |
€8,725 |
| Married Rates | |||
| Chargeable Income | |||
| From | To | Rate | Subtract |
| €- |
€12,700 |
0% |
€- |
| €12,701 |
€21,200 |
15% |
€1,905 |
| €21,201 |
€28,700 |
25% |
€4,025 |
| €28,701 |
€60,000 |
25% |
€3,905 |
| €60,001 |
and over |
35% |
€9,905 |
Parent Rates |
|||
| Chargeable Income | |||
| From | To | Rate | Subtract |
| €- |
€10,500 |
0% |
€- |
| €10,501 |
€15,800 | 15% |
€1,575 |
| €15,801 |
€21,200 |
25% |
€3,155 |
| €21,201 |
€60,000 |
25% |
€3,050 |
| €60,001 |
and over |
35% |
€9,050 |
Tax rates on qualifying part-time income
The income tax rate applicable on income derived from qualifying part-time employment has been revised from 15% to 10%. The maximum amount of qualifying part-time employment income that can qualify for this rate in any year is €10,000. Qualifying emoluments exceeding this amount are taxable at the standard applicable rates of income tax.
Qualifying Overtime Income & Tax
The income tax rate applicable on qualifying overtime emoluments remains 15%. However, this is now applicable to a maximum amount of emoluments of €10,000, rather than a maximum of 100 hours of overtime. Overtime emoluments exceeding this amount are taxable at the standard applicable rates of income tax.
Social Security Contributions
Social Security Contributions and Maternity Trust Fund Contributions applicable with effect from 1 January 2022.
| Class 1 Social Security Contributions - 2022 | ||||||
| Basic Weekly Wage* |
Weekly Rate Payable** |
|||||
| Category | From | To | by Employee | by Employer | Total | Maternity |
| A | €0.10 | €182.83 | €6.62 | €6.62 | €13.24 | 0.20 |
| B | €0.10 | €182.83 | €18.28* | €18.28 | €36.56 | 0.55 |
*Or if the employee chooses, 10% of the basic weekly wage. This rate of contribution entitles the contributor to pro-rata contributory benefits.. |
||||||
| Persons born up to 31 December 1961 | ||||||
| Category | From | To | by Employee | by Employer | Total | Maternity |
| C1 | €182.84 | €378.98 | 10% | 10% | n/a | 0.30% |
| D1 | €378.99 | n/a | €37.90 | €37.90 | €75.80 | €1.14 |
| Persons born from 1 January 1962 onwards | ||||||
| C2 | €182.84 | €499.73 | 10% | 10% | n/a | 0.30% |
| D2 | €499.74 | n/a | €49.97 | €49.97 | €99.94 |
€1.50 |
| E | n/a | n/a | 10% Max. €4.38 | 10% Max. €4.38 | n/a | 0.3% Max. €0.13 |
| F | n/a | n/a | 10% Max. €7.94 | 10% Max. €7.94 | n/a | 0.3% Max. €0.24 |
| * Basic Weekly Wage or the weekly equivalent of the basic monthly salary ** For percentage rates, the weekly rate payable is calculated to the nearest cent |
||||||
| Category |
Description | |||||
| A | Persons under 18 years of age earning not more than the amount indicated above. |
|||||
| B | Persons aged 18 and over, earning not more than the amount indicated above. | |||||
| C | All persons whose basic weekly wage is between the amounts indicated above. | |||||
| D | All persons whose basic weekly wage is equal to or exceeds the amount indicated above. | |||||
| E | Students** under 18 years of age. | |||||
| F | Students** 18 years old and over. | |||||
** Students who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration. |
||||||
Our PwC Payroll team can take care of all your payroll requirements, regardless of the size of your organisation. Our experts will help you identify your payroll challenges and design a tailored payroll process that will fit your needs and reach your objectives.
The above does not purport to provide legal, financial or other advice whatsoever. Specific considerations may be applicable in relation to the above information depending on the applicable sector as well as other circumstances which may impact in some way the applicability thereof. The information provided is subject to any additional information that may be published by the Commissioner for Revenue.
Should you require further information or any confirmation in this regard, please feel free to reach out.
Contact us
