Budget 2019 – How Much Extra in Your Take Home Pay?

There were some USC and Income Tax cuts announced in Budget 2019  and they took effect from January 1st 2019 .

But just how much will your Take Home Pay Increase in 2019 ?
The changes will be so small – most people probably won’t even notice them.


Here is a table with some examples of the 2019 increases in take home pay for various annual salaries.

( Single Earner – Figures rounded to the nearest Euro)

Gross
Annual
Salary

Net Monthly
Pay 2018
Net Monthly
Pay 2019
Monthly
Increase
Annual
Increase
€12,000
€1240€1240€0€0
€20,000€1550€1551€1€14
€25,000
€1819€1823€2€27
€35,000
€2405€2417€12€142
€45,000
€2832€2851€19€227
€60,000
€3473€ 3495€22€264

It’s interesting to note that Pensions and Welfare payments went up by €5 a week or €260 a year in March 2018 and will go up by the same amount in March 2019.

For PAYE workers , after the 2019 USC and tax cuts , a single person on €25000 salary a year will see just a €27 annual take home pay increase. Ten times less than the annual increase to pensions and social welfare.

A single working person will have to be earning at least €60000 a year to see an annual rise in take home pay of €260 in 2019.


Here are some more figures from Budget 2019 comparing the various areas of spending .

  • Total spend on increases to Social Welfare in 2019 €361.6 Million.
    (This includes €265 million on the Christmas Bonus.)
  •  Total combined reduction in Income Taxes and USC for 2019 :  €291 million 
    • (€105m USC ; €138m Tax Band Changes ;
    • €21m Home Carer credit
    • and €27m Self Employed Tax Credit.)

More here about those €5 a week Welfare Increases in 2019


Summary of USC Rates in 2019

Incomes of €13,000 are exempt. Otherwise:

€0 – €12,012    0.5%
€12,012  – €19,874     2%
€19,874 – €70,044   4.5%
€70,044  plus    8%

Self -employed income over €100,000 : 3% surcharge