As the Deputy will be aware, on 19 January 2022, the Government announced a Covid-19 recognition payment for eligible frontline healthcare workers to recognise their unique role during the pandemic. The resulting “Pandemic Special Recognition Payment” of up to a maximum of €1,000 per individual was to be made by and on behalf of the Minister for Health to specified categories of frontline healthcare workers. The Minister for Health holds policy responsibility for matters relating to the specification of and payment to those cohorts.
Section 192J of the Taxes Consolidation Act 1997 provides for an exemption from income tax, USC and PRSI in respect of any payment made to eligible front-line healthcare workers under the Pandemic Special Recognition Payment scheme.
The exemption only applies to payments made under that scheme, up to a maximum of €1,000 per qualifying individual. Staff outside of the cohorts specified under the scheme do not qualify for this exemption.