Budget 2022

Budget 2022 – The Payroll Perspective

With Budget 2022 now complete our Payroll experts analyses the key takeaways and how will they affect your employee’s net pay.

From a payroll perspective the headline measures include increases to: the minimum wage, income tax rate bands and the personal tax credits.

Minimum Wage has increased by €0.30 per hour for Experienced Adult Workers with younger employees also receiving increases. Workers aged 19 will receive 90% of the nominal minimum wage which is €9.45 per hour, while those aged 18 will receive €8.40 per hour and those under 18 will receive €7.35 per hour.

Standard Rate Cut Off Points have increased by €1,500  as per the table below


Standard Rate Cut off Point20212022
Single / Widowed Person or Surviving Civil Partner without qualifying children€35,300€36,800
Person qualifying for the Single Person Child Carer Tax Credit€39,300€40,800
Married Couple or Civil Partnership – One Income€44,300€45,800
Married Couple or Civil Partnership – Two Income€44,300 & €26,300*€45,800 & €27,800*


Personal Tax Credit, the Earned Income Credit and the PAYE Tax Credit have all increased by €50 with all three tax credits now at €1,700.

The weekly threshold for higher rate of employer PRSI will increase by €12 from €398 to €410 per week, from the 1st of January 2022. This has been done to ensure that there is no incentive to reduce the working hours for a full-time employee on the increased minimum wage. The ceiling of the second USC rate band has also increased from €20,687 to €21,295per annum.


What does this mean for your employees’ net pay?


To illustrate how these changes will impact your employees’ take home pay we’ve included 3 simple calculations which demonstrate the impact that Budget 2022 will have on a minimum wage worker, a single person earning €38,000 and a married couple earning a combined €75,000 (split €40,000, €35,000)

Minimum Wage Employees

In the case of the minimum wage employees working a 37.5 hour week, we can see that they would earn €435.40 more per annum as a result of the changes implemented in the budget.


Minimum Wage Employee* 20222021
Annual income €20,475.00 €19,890.00
Tax due €695.00 €678.00
PRSI €556.75 €435.85
USC €229.32 €217.62
Total deductions €1,481.07 €1,331.47
Annual disposable income €18,993.93 €18,558.53
Monthly disposable income €1,582.83 €1,546.54
Weekly disposable income €365.27 €356.89


Single Worker

Most single workers will also benefit, as demonstrated in our second calculation, which shows that a person earning €38,000 per annum is likely to have more than €415 extra disposable income per year, or approx. €8 per week, when compared with last year.



Single person with annual salary of €38,000* 20222021
Annual income€38,000.00€38,000.00
Tax due€4,440.00€4,840.00
Total deductions€6,957.45€7,372.65
Annual disposable income€31,042.56€30,627.36
Monthly disposable income€2,586.88€2,552.28
Weekly disposable income€596.97€588.99


Married Couple

Lastly our married couple is also significantly better off making out with more than €830 extra disposable income per annum.


Married couple with 1 salary of
€45,000 & €30,000*
Annual income €  75,000.00 €  75,000.00
Tax due €    8,480.00 €    9,280.00
PRSI €    3,000.00 €    3,000.00
USC €    1,949.89 €    1,980.29
Total deductions €  13,429.89  €  14,260.29 
Annual disposable income €  61,570.11 €  60,739.71
Monthly disposable income €    5,130.84 €    5,061.64
Weekly disposable income €    1,184.04 €    1,168.07


*Due to the complexity of tax and PRSI regulations, results are based on a number of tax assumptions


For more information on payroll and Budget 2022 register for our newsletter

Paycheck Plus, Your Irish Payroll Processing Team

Paycheck Plus is a multi award-winning Irish payroll bureau. We serve businesses across Ireland and the UK with comprehensive, ISO and ISAE 3402 accreditedpayroll outsourcing services.

To ensure payroll accuracy or for more information simply request a callback or call our Irish payroll company  on +353 (0) 1 905 9400

For UK Payroll Processing please contact our Manchester Payroll Service on +44 (0) 161 464 8720