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How much more basic pay will I get in 2023?

Thousands of workers will receive more money in their wages after the government announced an increase to the income threshold for the higher rate of income tax in budget 2023.

Workers currently pay 20% on any income they earn up to €36,800 and 40% on the remainder. From 1st January 2023 workers will now pay 20% on earnings up to €40,000 before entering the higher rate.

This means every PAYE worker will can earn an additional €3,200 @ 20% instead of 40%?

This means an average of €640 extra per year. If you earn €50,000 for example, you could stand to see between €50 and €60 extra every month. A worker on this salary will now pay €8,000 in tax on the first €40,000 and another €4,000 on the final €10,000 of their gross pay.

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