Dáil Éireann díospóireacht -
Tuesday, 9 Dec 1997

Vol. 484 No. 3

Written Answers. - Family Income.

Paul McGrath

Ceist:

216 Mr. McGrath asked the Minister for Finance the tax and PRSI contributions which will be paid consequent to the implementation of the 1998 budgetary proposals by a single income family of a husband, wife and three children earning £230 per week gross with no mortgage or other reliefs; the family income entitlements which will be paid to this family; and if he will give details of the take home gain that will come to this family of a £10, £20, £30 and £40 increase in gross wages. [22320/97]

Minister for Finance (Mr. McCreevy)

The position of a single income family of husband, wife and three children consequent to the implementation the 1998 budgetary measures, earning £230 to £270 per week gross, with details of deductions for tax, PRSI and levies, as well as additions for family income supplement is shown in the following table.

Gross Pay p.w.:	£	£	£	£	£
230	240	250	260	270
Less
PRSI	5.85	6.30	6.75	7.20	7.65
Levies	5.18	5.40	5.63	5.85	6.08
Income tax	17.00	21.00	25.00	29.00	32.03
Sub-total	201.97	207.30	212.62	217.95	224.24
Plus
FIS	30.00	26.82	23.62	20.43	16.66
Net Pay	231.97	234.12	236.25	238.38	240.90
Pre 98 budget	215.70	215.42	215.19	215.51	220.84
Net difference pre &post budget	16.27	18.70	21.06	22.87	20.06

As with the Deputy's recent pre-budget similar question, it is vital in interpreting this table that the mechanism for reviewing the family income supplement is understood. FIS is renewable on a 12 monthly basis: once awarded it will not be reduced or withdrawn until the end of the period, regardless of any upward movement in pay during the period. Therefore, gross income from employment can increase significantly during the course of a year while adjustments to FIS may not occur until some time later. FIS thresholds will be increased by £7 per week from next June while the supplement will be assessed on a full net basis, with effect from October 1998. Income tax and PRSI changes will take effect from 5 April 1998.