Budget 2023 - Employment Related Changes

Posted in : Supplementary Articles ROI on 28 September 2022
Ken Killoran
Issues covered: Budget 2023

It is Budget 2023 time and Ken Killoran (Tax Partner in Mazars) has set out below the key measures from an employment tax perspective:

Key employment tax-related change

  • No change to personal tax rates for 2023 but the Standard Rate Cut-Off Points (SRCOPs) for 2023 have been increased. (See page 14 of the Mazars Budget Report 2023 below for more information on this).
  • Personal tax credits have also been increased (see page 14 of the Budget Report below for more information on this).
  • No change to USC rates. The ceiling at which the 2% USC rate applies has been increased from €21,295 to €22,920.
  • No changes to PRSI rates.
  • Small Benefit Exemption - This exemption has been increased from €500 to €1,000. Employers will be allowed to give employees two vouchers per year tax-free (up to a total of €1,000) instead of just one voucher per year. This is applicable for 2022 and subsequent years. 
  • Special Assignee Relief Programme (SARP) - SARP relief was due to cease on 31 December 2022. It will now be extended until 31 December 2025. However, the qualifying minimum income limit will increase for new entrants from €75,000 to €100,000. 

More detail on the tax changes announced in the Budget will be published in the Finance Bill by the Department of Finance over the coming weeks.

For more information on all the changes announced in Budget 2023, please click on the link below to the Mazars Budget Report 2023:  

This article is correct at 28/09/2022

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Ken Killoran

The main content of this article was provided by Ken Killoran. Contact telephone number is +353 1 449 4400 or email kkilloran@mazars.ie

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