According to the budget announced by the Irish government, many policies officially took effect on January 1, 2018, including adjustments to the minimum hourly wage and personal income tax policies directly related to individuals' "pocketbooks."
Minimum Hourly Wage
At the beginning of 2018, the minimum wage for Irish workers was adjusted from €9.25 to €9.55—this means that full-time employees will see an increase of €12 in their weekly income.
Among the 28 countries in the European Union, 22 countries have established minimum wage standards, excluding Denmark, Italy, Cyprus, Austria, Finland, and Sweden. In fact, in 2016 and 2017, Ireland's minimum wage was the second highest in the EU (with €1,563 per month in 2017), second only to Luxembourg (with €1,999 per month in 2017).
Personal Income Tax
Starting January 1, the income tax threshold for high earners was raised from €33,800 per year to €34,550 per year, increasing the tax threshold by €750. For couples where only one person is working, the income tax threshold for high earners was raised from €42,800 to €43,550.
The Irish Revenue Commissioners have again raised the personal income tax threshold for 2018 to €34,550 per year. According to the principle of increasing fiscal revenue, at least 70% of the population are taxpayers who can reach this threshold. This means that essentially over 70% of Irish citizens can achieve an annual salary level of €34,550.
Income Tax Credit
Additionally, in 2018, the income tax credit amount in Ireland was raised from €950 to €1,150. This credit amount mainly applies to self-employed individuals or those who do not qualify for payroll withholding tax.
Universal Social Charge
The Universal Social Charge (USC), which is paid along with personal income tax, has also been adjusted accordingly, reducing the first rate from 2.5% to 2%, raising the upper limit of the second band from €18,772 to €19,372; the third band rate has been reduced from 5% to 4.75%. USC is a tax levied on an individual's total income. Individuals with an annual income exceeding €13,000 are required to pay it, generally withheld by employers.
Electric Vehicle Grant
Starting in 2018, the Sustainable Energy Authority of Ireland (SEAI) offers an "Electric Vehicle Home Charger Grant" for all new electric vehicle and used car owners, allowing homeowners who install chargers to apply for a grant of up to €600. The government will also fund the construction of public charging stations, with approximately 900 public charging stations currently available nationwide.
Additionally, the previous budget provided a maximum grant of €5,000 for electric vehicle purchases and a similar maximum of €5,000 for electric vehicle registration tax (VRT) exemptions. This new policy can save up to €10,000 per year for low-mileage company vehicles.
Other Supplements
For medical card holders under 70 years of age, the prescription fee per visit has been reduced from €2.50 to €2, and the monthly fee cap has been lowered from €25 to €20.
Starting March 26, the weekly amount of social welfare payments will increase by €5, and pensions will also increase by €5 per week.
Starting March 26, the Working Family Payment, formerly known as the Family Income Supplement, will see an increase of €10 in the income limit for families with three children.
In September, the Free Preschool Scheme will continue to expand, allowing all children aged 3 to 5 to enjoy two years of free preschool education.
Starting April 1, a sugar tax will be implemented. Sugary drinks containing 5 to 8 grams of sugar per 100 milliliters will incur a charge of €0.20 per liter, while drinks with more than 8 grams of sugar per milliliter will incur a charge of €0.30.
Additionally, the government has committed to increasing the number of new teachers by 1,200 before the start of the school year in September.
Currently, investors only need to invest €1,000,000 in government-designated enterprise projects in Ireland to apply for residency for the entire family. After meeting certain residency conditions, they can apply for an Irish passport, immigrate to Ireland, and enjoy a high-quality life. Consultation hotline: 400-138-2929.
