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Budget 2023 Highlights

The Payroll Perspective

How Budget 2023 will impact Payroll in Ireland

As part of Budget 2023 minister for Finance Paschal Donohoe has announced a total package of €11 billion, which will be split between core budget measures worth €6.9 billion, and a budget worth €4.1 billion to tackle the cost of living. But what does it mean for Irish employers? In this article we break-down what Budget 2022 means for you, your business, and your employees.


Minimum Wage

Ahead of the 2023 Budget, Cabinet had already approved a €0.80 rise to the minimum wage. This is the highest single rate increase since the start of the National Minimum Wage Act 2000. The National Minimum Wage is Ireland will change with effect from 1st January 2023 from €10.50 to €11.30 per hour.

National Minimum Wage is set to increase to:

€11.30 for Experienced Adult Workers

€7.91 for Workers under 18

€8.40  for Workers aged 18

€10.17 for Workers aged 19


Universal Social Charge (USC)

USC Exemptions for medical card holders & people aged over-70 earning less than €60,000 has been extended until 31st December 2023.

From 1st January, USC will apply at the following rates for those earnings in excess of €13,000. The ceiling of the second USC rate band has increased to €22,920 from €21,295.


Standard Rate cut off Points

Standard Rate Cut Off Points have been raised for the following:

Single / Widowed Person or Surviving Civil Partner without qualifying children – €40,000

Married Couple or Civil Partnership – One Income – €49,000

Married Couple or Civil Partnership – Two Income  – €49,000 & €31,000 (The rate band is capped at the lower of €31,000 or the income of the lower earner. This cannot be transferred between spouses / civil partners)


Tax Credits

Personal Tax Credit, Employee Tax Credit & Earned Income Tax Credit to increase by €75

Maternity Benefit & Parental Leave

All social welfare payments are to increase by €12

Maternity Leave increased to €262

Adoptive Leave increased to €262

Carer’s Leave increased to €237

Parent’s Leave increased to €262

Paternity Leave increased to €262


Special Assigned Relief Programme (SARP)

SARP has been extended to 31st December 2025 but increasing the minimum income limit for new entrants to €100,000.

Existing claimants will not be affected by the change announced. The income limit will remain at €75,000 for those existing claimants.


Small Benefit Exemption

The Small Benefit Exemption has been increased to a limit of €1,000. Employer’s will not be able to grant two benefits to employees in the tax year with the combined total equaling €1,000.

The announcement of the increase can be applied in the 2022 tax year.


For more on Budget 2023 and Payroll in Ireland read:

Paycheck Plus, Your Award Winning Payroll Service

Regardless of your organisation’s size or industry Paycheck Plus are here to help you navigate through Budget 2023. As the most decorated payroll company in Ireland. We can provide a comprehensive, ISO accredited payroll service capable of offering payroll consultancypayroll audits, payroll reporting, payroll training and much more.

To ensure payroll accuracy or for more information on our payroll services call our Irish office on +353 (0) 1 905 9400.