Net Income changes since 2008

Here is a summary table of changes to net income at different gross annual incomes since 2008.  There is two figures for 2009.  The first corresponds to Budget 2009 introduced in October 2008 and the 2009* figures are the result of the Supplementary Budget introduced in April 2009.

All the figures are derived from this tax calculator which is the source of any errors and omissions.  The figures are based on a single, private-sector, PAYE worker aged under 65 who does not have a medical card.  No allowance is made for pension contributions, medical expenses or the like.  The table is merely to highlight some of the relative changes that have occurred in net pay.  Net pay is the starting gross figure in each column after the deduction of Income Tax, the Universal Social Charge (or the Health and Income Levies as appropriate) and PRSI.

As can be seen a worker on €15,000 has seen their net pay fall by €399 as a result of the introduction of the USC in Budget 2011.  This represents a drop of 2.7%.  The reductions increase through the income distribution.  At an income of €250,000 the reduction is just over €20,000 leading to a 13.3% fall in net pay. 

Around two-thirds of this reduction resulted from the measures introduced in the April 2009 Supplementary Budget.  The changes were a reduction in the thresholds and a doubling of the rates for the Health and Income Levies as well as an increase in the (now abolished) PRSI ceiling.  Some details of these changes are here.  The Income Levy had only being introduced the previous October and the two levies were subsequently merged into the Universal Social Charge in Budget 2011.