Information Circular No 21/2015: Budget 2016

By Industrial Relations Officer

Budget 2016 was announced on 13 October 2015.  The main Budget changes that may affect members are set out below.  This is a brief overview and not a complete statement of the measures announced in Budget 2016.  A more detailed analysis of Budget 2016 will be published in the Defender.

Universal Social Charge (USC)

For 2016 incomes of €13,000 (was €12,012) or less will be exempt from USC.  Once your income is over this limit, you will pay the relevant rate of USC on all of your income as follows:

  • The first €12,012         @ 1%
  • €12,013 to €18,668     @ 3%
  • €18,669 to €70,044     @ 5.5%
  • €70,045 to €100,000   @ 8%

PDFORRA members should realise a reduction in Universal Social Charges of between €7 and €9 per week

Medical card holders and individuals aged 70 years and over whose aggregate income does not exceed €60,000 will pay a reduced USC rate as follows:

  • The first €12,012 of Income   @ 1%
  • All Income over €12,013        @ 3%

Taxation

The Home Carer’s Tax Credit that is given to married couples or civil partners where one spouse or civil partner works in the home caring for a dependent person is increasing from €810 to €1,000 for 2016.  The home carer’s income threshold is increasing from €5,080 to €7,200.

PDFORRA members in receipt of the Home Carer’s Tax Credit should pay €3.60 less income tax as a result of this measure.

Child Benefit

The rate of Child Benefit will increase by €5 to €140 per month for each child (January 2016).  Families with twins receive one and a half times the normal monthly rate for each child.  Families with multiple births receive Child Benefit at double the normal monthly rate for each child.

Child Benefit Rates: 2015 and 2016

Number of Children 2015 Monthly Rate € 2016 Monthly Rate € 2016 Annual Rate € Yearly Increase from 2016 €
1 child 135.00 140.00 1,680.00 60.00
2 children 270.00 280.00 3,360.00 120.00
3 children 405.00 420.00 5,040.00 180.00

Family Income Supplement (FIS)

Family Income Supplement thresholds will be increased by €5 for each of the first two children per week.  The threshold for the third and all other children will increase by €10 (January 2016).

The level of FIS payment will continue to be based on 60% of the shortfall between net weekly family income and the applicable weekly family threshold.  This measure will cost €18 million.  It will benefit nearly 60,000 families and over 131,000 children.  It will also result in an additional 1,500 households and 3,365 children becoming eligible for FIS.

Family Income Supplement (FIS)
Family Size 2015 Income Limit 2016 Income Limit
1 child €506.00 €511.00
2 children €602.00 €612.00
3 children €703.00 €713.00
The level of FIS payment will continue to be based on 60% of the shortfall between net weekly family income and the applicable weekly family threshold.

Carers

The name of the Respite Care Grant will be changed to the Carer’s Support Grant to better reflect how it is used by recipients.  The grant will increase by €325 to €1,700 per year for each person being cared for (June 2016).  This will benefit 86,000 carers.

Carer’s Allowance will be paid for 12 weeks (currently 6 weeks) after the death of the person being cared for (January 2016).

 

Issued on: 30/10/2015

 

 

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