SMEs to receive support package as part of Budget 2024

The Irish Government has announced Budget 2024, which includes a special €250m package for small and medium-sized businesses (SMEs) to help with rising costs.

Approximately 130,000 SMEs, including hair and beauty salons, are to receive once-off payments that are intended to soften the impact of various expenses, including the hike in the minimum wage.

As part of Budget 2024, the Government also announced that the minimum wage in Ireland will increase to €12.70 in 2024. Currently, a person on the minimum wage earns €11.30.

The new financial support package for SMEs could see some getting up to 50% of their rates paid by the State. The payment method is designed to be as straightforward as possible, unlike some previous support schemes.

A number of changes to the tax system were also unveiled. Workers will now hit the higher rate of income tax at €42,000, up from the previous €40,000 rate, while the 4.5% rate of Universal Social Charge (USC) will drop to 4%. The 2% USC band ceiling will also increase by €2,840 to €25,760, and the earned income tax credit will jump by €100 to €1,875.