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Budget 2022 – What you need to know as an Employer

Covid supports

The Employment Wage Subsidy Scheme will remain in place, in a graduated format, until 30 April, 2022 – the scheme will close to new employers from 1 January, 2022.

While there will be no change to the current four rates of EWSS payments over the course of October and November, a two-rate structure of €151.50 and €203.00 will apply from December until the end of February, bringing it back into line with what was set up in September last year to replace the so-called Temporary Wage Subsidy Scheme (TWSS).

For companies availing of the scheme that means a €151.50 subsidy for employees earning gross weekly amounts of between €151.50 and €202.99, while a €203.00 amount will apply to those earning between €203.00 and €1,462. Weekly salaries below €150.50 and above €1,462 are not subsidised.

Childcare and Family

Maternity benefit and parental leave payments to be increased by €5 per week.

Parent’s Benefit will increase to €250 from January and in line with the EU Directive, it will be paid for 7 weeks from July 2022, an increase of 2 weeks. Each parent can avail of the seven weeks of benefit during the first two years after their baby is born or adopted.


The minimum wage will increase by 30 cent to €10.50 per hour from 1st January 2022. This increase will also mean that those working under certain conditions, under the age of 18, 19 and 20, will receive a corresponding increase in their pay, as they are entitled to a percentage of the full minimum wage rate. The increase in the nominal minimum wage in Ireland to €10.50 will move Ireland from having the third highest nominal minimum wage rate of the 21 EU member states that have national minimum wages to having the second highest. In 2021, Ireland’s rate was 6th in the rankings, when adjusted for purchasing power standards.

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Income tax deduction amounting to 30% of vouched expenses for heat, electricity and broadband incurred while working from home. This will apply for those days that they are working from home only, and can be claimed if their employer is not paying the tax-free €3.20 a day discretionary payment. Bills for heating and lighting homes are expected to rise by between €500 and €800 this year as a raft of price rises have been announced. Home workers have to wait until the end of the financial year to submit a claim to Revenue, and they have to upload the relevant bills.