Dáil Éireann Debate, Tuesday - 17 May 2022
246. Deputy Fergus O'Dowd asked the Minister for Finance if he will address concerns raised (details supplied) in relation to the process for payment of the Covid-19 recognition bonus; and if he will make a statement on the matter. [24188/22]
Amharc ar fhreagraAs 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 is to be made to specified categories of frontline healthcare workers. The Government has committed that this payment will not be subject to income tax, USC, or PRSI.
It is expected that the legislation providing for the tax exemption, which is contained in section 3 of the Finance (COVID-19 and Miscellaneous Provisions) Bill 2022 will be enacted shortly. In the meantime, Revenue has advised me that it is providing for the tax exemption to be applied under its care and management provisions in section 849 of the Taxes Consolidation Act 1997. This permits any Pandemic Special Recognition Payment to be made to a qualifying frontline healthcare worker without deduction of income tax, USC and PRSI.
Specifically in respect of the concerns raised in the details supplied, Revenue advises me that any Pandemic Special Recognition Payment already made to a qualifying frontline healthcare worker in Beaumont Hospital is covered under Revenue’s care and management provisions, therefore permitting the payment to be made without deduction of income tax, USC and PRSI.
The legislation contained in section 3 of the Finance (COVID-19 and Miscellaneous Provisions) Bill 2022, when enacted, is worded to the effect that all Pandemic Special Recognition payments made under the Government’s scheme will be exempt from tax and so will also cover any payments already made.
