Budget 2016 confirmed that the top rate of the minimum wage will be increased in January 2016 by 50c an hour to €9.15 per hour. Full Details Here
Alongside the pay increase there will also be PSRI changes and USC changes. So : how much extra will someone get in their take home pay after all the changes are taken into account?
If we look at someone on the minimum wage working full time for 39 hours a week. Their gross annual pay will currently be €17542 and they will have to pay Income Tax of €208 a year but no PSRI and €374 USC. This leaves them with a take home pay of €16960 a year or €8.36 an hour
From January 2016 their pay will increase to €9.15 an hour or €18556 a year. They will have deductions of €411 Income Tax, €160 PSRI and €316 USC. This will leave them with a take home pay of €17669 a year or €8.71 an hour . This represents an annual increase of €709 a year or 35c an hour.