Dáil Éireann Debate, Tuesday - 8 October 2013
160. Deputy Seán Conlan asked the Minister for Finance the average total benefit to the Exchequer of a construction worker going from the live register to paid employment, taking into account the social welfare savings and increased income tax generated; and if he will make a statement on the matter. [41986/13]
View answerIt is not possible to calculate an average benefit that would take account of all of the variables that apply in every case. However, I can put forward a specific example for the information of the Deputy. The calculations presented are based on a single individual who takes up employment at the average annual salary in the construction sector, i.e. €40,459 for 2013, based on the latest information available. Before taking up the employment, the individual was entitled to the full rate of Jobseekers Benefit/Allowance at €188 per week. No other secondary benefits, which the individual may have been entitled to, have been included for the purpose of these computations. Furthermore, it is assumed that the individual is not in receipt of a medical card and therefore does not benefit from the concessionary Universal Social Charge (USC) rate. The following tax credits have been included in the computation:
|
Tax Credit |
Amount |
|
PAYE tax credit |
€1,650 |
|
Personal tax credit: |
€1,650 |
|
Tax Liability 2013 |
- |
|
Earnings |
€40,459 |
|
USC |
(€2,151) |
|
PRSI |
(€1,618) |
|
Income Tax |
(€6,400) |
|
Total Deductions |
(€10,169) |
|
Net Pay |
€30,290 |
Additional tax revenues of €10,169 per annum (including Income Tax, USC and PRSI) would be generated over a full tax year in such a case. In addition, savings of €9,776 per annum would be achieved in relation to Jobseekers payments. Therefore, the total annual benefit to the Exchequer would be €19,945 in this specific example.
