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Payroll updates for 2014

Cost of Living Wage Adjustment (COLA) for the year 2014

The Cost of Living Wage Adjustment (COLA) for 2014 is € 3.49 per week.

National Minimum Wage

The National Minimum Wage related to a normal working week shall consequently be increased as follows, with effect from 1st January 2014.

 Aged 18 years and over - € 165.68 per week

 Aged 17 years - € 158.91 per week

Aged below 17 years - € 156.06 per week

 

Part-Time Employees

Part-time employees are to have their wages increased pro-rata by an hourly rate not below one fortieth of the applicable weekly rate shown above. Their National Minimum Wage shall likewise be pro-rated at an hourly rate not below one-fortieth of the applicable weekly rate shown below.

Preferential 15% tax rate on second employment to be extended to income of €10,000 up from €7,000.

Tax Rates Revision

Income tax rate of those earning between €19,501 and €60,000 will go down from 32% to 29%.

 

Tax Rates for Basis Year 2014

Single Rates

FromToRateSubtract (€)
08,5000%0
8,50114,50015%1,275
14,50119,00025%2,725
19,50160,00029%3,505
60,001 and over35%7,105

Married Rates

FromToRateSubtract (€)
011,9000%0
11,90121,20015%1,785
21,20128,70025%3,905
28,70160,00029%5,053
60,001 and over35%8,653

Parent Rates

FromToRateSubtract (€)
09,8000%0
9,80115,80015%1,470
15,80121,20025%3,050
21,20160,00029%3,898
60,001 and over35%7,498

 

Parents

The tax band for parent computation will be broadened to €9,800 from €9,300. The age of children to which this measure will apply will go up to 23 from 21.

Working women

Income of a married woman over 40 who had been inactive for more than 5 years, and now tax exempt, will not be included in the joint tax computation with her husband’s.

Youth

A €600 tax deduction will be offered to entrepreneurs for every apprentice they take on.

National Insurance Contributions

With effect from 1st January 2014, the National Insurance Contributions have been revised as follows:

Part I Rates of Class One Contributions (Employed Persons)

Category

Type of Employed Persons

Weekly Rate of Contribution Payable by Employed Person

Weekly Rate of Contribution Payable by the Employer

A

Persons under 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €165.58

€6.62

€6.62

B

Persons over 18 years of age whose basic weekly wage or the weekly equivalent of their basic monthly salary does not exceed €165.58

€16.57, or if the insured person elects, 10% calculated to the nearest cent of such person’s basic weekly wage or the weekly equivalent of such person’s basic monthly salary (see note 1 below)

€16.57

C

Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €165.58 but does not exceed €342.53

10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary

10% calculated to the nearest cent of their basic weekly wage or the weekly equivalent of their basic monthly salary

Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €165.58 but does not exceed €412.14 (see note 2 below)

D

Persons born on 31 December 1961 or before whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €342.54

                €34.25

€34.25

 

Persons born on 1 January 1962 or after whose basic weekly wage or the weekly equivalent of their basic monthly salary exceeds €412.14 (see note 2 below)

                €41.21

€41.21

E

Persons under eighteen years of age 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.

10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €4.38

10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of

 

 

 

 

F

Persons over eighteen years of age 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

10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €7.94

10% calculated to the nearest cent of the basic weekly remuneration or the weekly equivalent of their basic monthly remuneration up to a maximum rate of contribution of €7.94

Part II Rates of Class Two Contributions

Rates for Class 2 Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year.

For Social Security Contribution purposes:

Self Occupied persons are persons who earn income from Trade, Business, Profession, Vocation or any other economic activity that exceeds the threshold (refer to table below).

Self Employed persons are persons who receive income from rents, investments, capital gains or any other income.

Rates of Class Two Contributions (Self Employed Persons)

 

Category

Type of Self Employed Persons

Weekly Rate of Contributions payable by a self-employed person

Persons whose annual net earnings (excluding Maternity Benefit, Children’s Allowance and any ex-gratia Benefit payable under article 88 of this Act) during the calendar year immediately preceding the contribution year in which the contribution is being paid:

SP

Persons who exceed €1,005 but does not exceed €8,379 (this category applies only to single persons who are not self-occupied)

 

€24.17

SA

is less than €9,839

€28.38

SB

Persons born on 31 December 1961 or before whose annual net income exceeds €9,840 but does not exceed €17,811.

Persons born on 1 January 1962 or after whose exceeds €9,840 but does not exceed €21,431.

 

 

The weekly equivalent of 15% of their annual income calculated to the nearest cent.

 

SC

 

Persons born on 31 December 1961 or before whose annual net income exceeds €17,812.

 

Persons born on 1 January 1962 or after whose annual net income exceeds €21,432 (see NOTE 1 below)

 

€51.38

 

 

€61.82

 

Rates of Class Two Contributions (Self Occupied Persons)

Category

Type of Self Occupied Persons

Weekly Rate of Contributions payable by a self-occupied person

 

 

Persons whose annual net earnings (excluding Maternity Benefit, Children’s Allowance and any ex-gratia Benefit payable under article 88 of this Act) during the calendar year immediately preceding the contribution year in which the contribution is being paid:

SA

is less than €9,839

€ 28.38 or 15% of the annual net earnings if the person is a part-time self-employed woman whose annual net earnings do not exceed € 9,839 (see NOTE 1 below)

or

€18.92 if the person is a full-time farmer or breeder whose annual net earnings do not exceed €9,839

SB

Persons born on 31 December 1961 or before whose annual net earnings exceeds €9,840 but does not exceed €17,811

The weekly equivalent of 15% of their annual earnings calculated to the nearest cent

or

The weekly equivalent of 10% if a full-time farmer or breeder

Persons born on 1 January 1962 or after whose annual net earnings exceeds €9,840 but does not exceed €21,431

SC

Persons born on 31 December 1961 or before whose annual net earnings exceeds €17,812

€ 51.38

or

€34.25 if a full-time farmer or breeder

 

Persons born on 1 January 1962 or after whose annual net earnings exceeds €21,432 (see NOTE 2 below)

€ 61.82

or

€41.21 if a full-time farmer or breeder

NOTE 1: If the insured person elects to pay a contribution that is less than €28.38, such contribution may, if the person qualifies for a contributory benefit or a contributory pension, result in the payment of a reduced contributory benefit or contributory pension.

NOTE 2: The increase in the highest contribution rate payable is related to a guaranteed maximum pensionable income as a result of the pension reform which became law by virtue of Act XIX of 2006 and Legal Notice 336 of 2006.

National Insurance: Sickness, Injury, Unemployment & Special Unemployment Benefits

The daily rates of benefit payable as from 1 st January 2014:-

 

Daily Rate of Benefit (€)

 

Type of Benefit

A Single Parent or a Married Person maintaining a Spouse who is not employed on a full-time basis

Any other Person

Sickness Benefit

19.46

12.59

Injury Benefit

29.21

21.97

Unemployment Benefit

11.80

7.72

Special Unemployment Benefit

19.83

12.94