The Irish Government published Budget 2021 yesterday and it consists of a €17 billion spending package.
Protecting businesses and jobs against COVID-19 and Brexit is a clear aim.
Here, we look at the key points of Budget 2021 every employer should be aware of.
The COVID-19 Restrictions Support Scheme
Announced as part of Budget 2021 is the new COVID-19 Restrictions Support Scheme (CRSS). The CRSS is being introduced to support businesses affected by public health restrictions. For eligible businesses, as much as €5,000 per week may be available.
Furthermore, the Employment Wage Subsidy Scheme (EWSS) could be extended next year if necessary.
Working from home advised
It’s no secret that working from home has played an important role in the fight against COVID-19.
Having seen the positive impact the shift has made, an interdepartmental group has been established. This group will look to develop a national strategy for remote work and service delivery.
Furthermore, certain tax reliefs will also become available to those working from home.
Public health restrictions have affected most businesses. Among the worst-hit are those in the hospitality sector.
As a response to this, there has been a reduction in the VAT rate to 9%. This will support businesses throughout the tourism, hospitality, and entertainment sectors.
Also, commercial rates holidays will be extended, and employers can warehouse certain payroll liabilities incurred under the Temporary Wage Subsidy Scheme for one year without interest.
Other important Budget 2021 updates
- The national minimum wage will increase to €10.20 per hour on January 1st, 2021. The weekly threshold for the higher rate of employer’s PRSI will also increase from €394 to €398.
- Parent’s leave and benefit will increase to five weeks for parents of children born or adopted from November 1st, 2019.
- Illness Benefit ‘waiting days’ will reduce from six to three days for all new claims from the end of February 2021. Employees with no sick pay entitlements will also benefit by receiving their Illness Benefit three days sooner.
- Investments in apprenticeship training, upskilling, and education programmes are also included.
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For further advice on Budget 2021 and supports available to you, speak to one of our experts now on 01 886 0350 or request a callback here.