Dáil Éireann Debate, Thursday - 3 March 2005
52 Mr. M. Higgins asked the Minister for Finance the number of persons on the national minimum wage who are expected to be brought back into the tax net if the increase to €7.65 per week, as recommended by the Labour Court, is implemented; and if he will make a statement on the matter. [7154/05]
Amharc ar fhreagraI remind the Deputy it was this Government that introduced the minimum wage to protect low paid workers and which, over the last eight budgets, removed a record number of some 459,500 workers from the tax net.
The wage is €15,515 on an annualised basis, based on a 39-hour week. The income tax threshold is €14,250 per annum. The Revenue Commissioners estimate there will be approximately 37,300 income earners in this annual income range in 2005 who will pay some small amount of tax if the new minimum wage is implemented. Some of these are likely to be workers on the minimum wage working full time, while others are likely to be workers on higher wage rates working shorter hours. This estimate is provisional and likely be revised. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
