How the Budget affects low incomes
Sarah: I am working a 20-hour week on the minimum wage and am barely keeping my head above water. My rent is €375 per month and I am not taking any rent allowance/benefits from the state. Will my income be included in these new tax brackets and if so-how much worse off will I be?
If Sarah agrees with her employer for her hourly rate to be reduced from €8.65 to €7.65 an hour, her weekly gross pay will be reduced by €20 per week. Sarah will also be subject to the Universal Social Charge at 2pc, which will reduce her net pay by a further €3 per week. Sarah’s salary will be reduced by a total of €1,196 for 2011.