Richard Bruton
Question:254 Mr. Bruton asked the Minister for Finance the number of persons that are earning the minimum wage or less who will be subjected to income tax in 2006. [27710/06]
View answerThursday, 6 July 2006
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Written answers
The current minimum wage is €7.65 per hour. On an annualised basis, this is equivalent to €15,515 assuming a 39 hour working week.
The present entry point to income tax under the PAYE system is €15,600 per annum for a single person under 65.
The position is, therefore, that no employee who benefits from entitlement to the employee (PAYE) tax credit in addition to the basic personal tax credit will be subjected to income tax in 2006.
However, a small number of persons with income at or below the current minimum wage annualised who do not have entitlement to the employee tax credit are likely to be liable for a small amount of income tax in 2006. This group comprises, essentially, proprietary directors and certain pensioners.