Saturday 16 December 2017

Single income family with three children paying into a pension

Orla: We are a one-income family. My husband earns €77,000 and pays 5pc of his own income into a pension. His company pays 10pc. We have three children under five. How much worse off will we be?

Orla’s family will be affected by several of the budget measures.

The reduction in the personal, PAYE, and home carers tax credits will cost them €630 and the narrowing of the standard rate tax band will cost them a further €756, increasing the income tax bill by €1,386.

The reduction in child benefit will cost them €480.

The removal of PRSI relief for pension contributions and the abolition of the PRSI ceiling will increase their PRSI bill by €154.

The universal social charge which replaces the income levy and the health levy, will cost them an additional €204. This brings the total cost of the budget for Orla’s family to €2,224.

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