EWSS and 9% VAT rate extension announced in Budget 2022
The Irish Government has unveiled Budget 2022, with an extension of the Employment Wage Subsidy Scheme (EWSS) among the measures announced.
Minister for Finance Paschal Donohoe confirmed that the scheme has been extended to the end of April 2022, however it will remain in place in a graduated/phased out format.
While there will be no change to the EWSS over the course of October and November, a two-rate structure of €151,50 and €203 will apply from December until the end of February, falling to €100 for March and April. The scheme will close to new employers from 1 January 2022.
Meanwhile, the current 9% VAT rate currently in place for the hospitality industry, which includes hairdressing services, is to remain in place until August 2022. The National Minimum Wage is to increase by 30c to €10.50/hour, while the Universal Social Charge second band will increase from €20,687 to €21,295 in recognition of increase in minimum wage.
Minister Donohue also announced an income tax package to the value of almost €520m in the Budget. This sees the standard tax rate band increase by €1,500, while the personal tax credit, employee tax credit and earned income credits will also rise by €50.
