Dáil Éireann Debate, Tuesday - 9 June 2015
391. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform to set out, in tabular form, the gross and net impact on 1 January 2016 of the public service stability agreement for a single worker for each of the following salary levels: €20,000, €25,000, €30,000, €40,000, €50,000 and €65,000; and if he will make a statement on the matter. [22406/15]
Amharc ar fhreagra392. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform to set out, in tabular form, the gross and net impact on 1 September 2016 of the public service stability agreement for a single worker for each of the following salary levels: €20,000, €25,000, €30,000, €40,000, €50,000 and €65,000; and if he will make a statement on the matter. [22407/15]
Amharc ar fhreagraI propose to take Questions Nos. 391 and 392 together.
Under the terms of the proposed Agreement the following measures apply in 2016.
On 1 January the exemption threshold for payment of Pension Related Deduction (PRD) will increase from €15,000 per annum to €24,750 per annum.
On 1 January annualised salaries up to €24,000 are increased by 2.5%.
On 1 January annualised salaries from €24,001 up to €31,000 are increased by 1%.
On 1 September the exemption threshold for payment of Pension Related Deduction (PRD) will increase further from €24,750 per annum to €28,750 per annum.
The data sought by the Deputy are set out in the table.
|
|
€20,000 |
€25,000 |
€30,000 |
€40,000 |
€50,000 |
€65,000 |
||||||
|
|
January |
September |
January |
September |
January |
September |
January |
September |
January |
September |
January |
September |
|
Gross Annual Benefit (Pay Increases) |
€500 |
€500 |
€250 |
€250 |
€300 |
€300 |
€0 |
€0 |
€0 |
€0 |
€0 |
€0 |
|
Net Annual Benefit (Net effect of Pay Increase plus PRD changes) |
€433 |
€433 |
€620 |
€660 |
€647 |
€967 |
€360 |
€600 |
€360 |
€600 |
€360 |
€600 |
The figures in the table are the gross and net annual value of each of the measures which will be implemented on a phased basis (January and September) in 2016.
Note: These are illustrative calculations reflecting the impact of the proposed Lansdowne Road Agreement measures only. Therefore, the 2015 tax rates, bands, USC, PRSI and pension contribution rates have been applied in calculating the 2016 figures. The calculations assume an individual under single assessment, with standard rate bands and tax credits, liable to PRSI at Class A.
