A brief overview of the main updates and adjustments in relation to payroll, employment & related services, including COLA, Minimum Wage, various Leave Entitlements, Tax Rates and Social Security Contributions for 2023, is set out below.
COLA
The Cost of Living Adjustment (increase) is of €9.90 per week (€514.80 per annum) for full-time employees. This is pro-rated in the case of reduced working hours. For part-timers (based on a standard 40-hour week) this equates to €0.25 per hour
Source: LN 333 of 2022
Minimum Wage
As of 1 January 2023, the national minimum weekly wage for whole-time employees is as follows:
18 years of age and over |
€192.73 |
17 years of age |
€185.95 |
| Under 17 years of age | €183.11 |
In addition to COLA, the weekly wage must be revised to reach €3.00 per week above minimum wage after the first year and €6.00 per week above the minimum wage after the second year of employment
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.
Source: LN 334 of 2022
Vacation Leave Entitlement
In 2023, an employee with a 40-hour working week will be entitled to 208 hours of paid vacation leave; that is, the 192 hours basic leave entitlement plus 16 hours in lieu of the two Public Holidays that fall on weekends.
The entitlement should be pro-rated in the case of reduced working hours.
Work-Life Balance for Parents and Carers Regulations
Paternity Leave
Fathers or equivalent second parents are entitled to 10 working days of paid paternity leave, to be utilised immediately upon the birth or adoption of the employee’s child. Such entitlement is not subject to any qualifications of period of work or to a length of service.
Parental Leave
In addition, every worker being in employment with the same employer for a continuous period of 12 months is entitled to a total of 4 months of parental leave per child, until the child reaches 8 years of age.
From the 4-month entitlement, 2 months shall be paid at the married rate established for the sickness benefit entitlement under the Social Security Act in the following manner:
50% of the paid entitlement |
Where the child has not yet attained the age of 4 years |
|
25% of the paid entitlement |
Where the child has attained the age of 4 years, but has not yet attained the age of 6 |
|
25% of the paid entitlement |
Where the child has attained the age of 6 years, but has not yet attained the age of 8 |
This type of leave applies in instances of birth, adoption, child fostering or legal custody of a child.
Carers’ Leave
Every employee is entitled to 5 working days a year of unpaid carers’ leave, in order to provide care and support to a relative or a person who lives in the same household suffering from a serious medical condition.
Flexible Working hours for parents and carers
Employees who are either parents of children up to 8 years of age and/or carers may request their employer for flexible working arrangements in order to be able to care for such persons. Flexible working arrangements may include remote working, reduced hours of work or flexitime.
In case that such request is denied by the employer, the employer shall provide reasons behind such a refusal.
Transparent and Predictable Working Conditions Regulations
In terms of the abovementioned recent regulations, employer’s should ensure that employees are provided with various employment-related information in writing. The employment information may be transmitted on paper or in electronic form; in the latter instance, proof of transmission and receipt of such information should be retained.
Such information includes, but is not limited to:
Employee and employer details, including name, ID number/registration number and residence/registered place of business as may be applicable;
The place where the employee is to carry out their work;
A brief job description of the employee;
The commencement date of employment, as well as the end date in the case of fixed-term contracts;
The amount of the employee’s paid leave entitlement, including but not limited to, vacation leave, sick leave, paternal leave, parental leave, maternity leave, carer’s leave, urgent family leave, bereavement leave, marriage leave injury and jury leave;
The employee’s working time patterns and any applicable rates of pay including overtime;
The procedures to be observed by the employer and employee in the case of termination; including formal requirements and notice periods.
Such information should be provided to a new employee within 7 days from the commencement of employment, or in the case of an existing employee, upon the said employee’s request to the employer of such information.
Source: LN 267 of 2022
Tax Rates
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
Part-time employment
The income tax rate applicable on income derived from qualifying part-time employment (where it is not the main employment) is 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.
Part-time self-employment
The income tax rate applicable on income derived from part-time self-employment (where it is not the main employment) is 10%. The maximum amount of qualifying part-time self-employment income that can qualify for this rate in any year is €12,000. 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% on the first €10,000, provided that the basic weekly wage does not exceed €375.00
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 2023.
Class 1 Social Security Contributions - 2023 |
||||||
|
Basic Weekly Wage* |
Weekly Rate Payable** |
|
|||
Category |
From |
To |
by Employee |
by Employer |
Total |
Maternity |
A |
€0.10 |
€192.73 |
€6.62 |
€6.62 |
€13.24 |
€0.20 |
B |
€0.10 |
€192.73 |
€19.27# |
€19.27 |
€38.54 |
€0.58 |
#Or if the employee chooses, 10% of the basic weekly wage. This rate of contribution entitles the contributor to pro-rata contributory benefits. The employer contribution remains €19.27 per week. |
||||||
|
Persons born up to 31 December 1961 |
|||||
C1 |
€192.74 |
€392.76 |
10% |
10% |
n/a |
0.30% |
D1 |
€392.77 |
n/a |
€39.28 |
€39.28 |
€78.56 |
€1.18 |
|
||||||
|
Persons born from 1 January 1962 onwards |
|||||
C2 |
€192.74 |
€515.98 |
10% |
10% |
n/a |
0.30% |
D2 |
€515.99 |
n/a |
€51.60 |
€51.60 |
€103.20 |
€1.55 |
|
||||||
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 |
||||||
| 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. |
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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.
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