Legislation for Irish payroll

National minimum wage (NMW)

From 1 January 2023, the NMW rate increases from €10.50 to €11.30. Our National Minimum Wage (NMW) in Ireland guide tells you more.

Pay related social insurance (PRSI)

The PRSI upper threshold for AX increases from €410 to €424 and the lower threshold for AL increases from €410 to €424.01.

Pay as you earn (PAYE)

Standard Rate Cut Off Point (SRCOP) increases from €36800 to €40000 for a single person and tax credits increase from €1700 to €1775.

The SRCOP applicable under the Emergency Basis of tax increases from €679 to €708 per week, from €1,358 to €1,416 per fortnight and from €2,942 to €3,067 per month. 

Universal Social Charge (USC)

The second rate 2% upper threshold increases from €21,295 to €22,920.

Statutory Sick Pay

The Sick Leave Act 2022 became law on 20 July 2022. The new sick leave legislation entitles employees to Statutory Sick Pay (SSP).

From 1 January 2023, employees have a right to:

• Paid sick leave for up to 3 days per year. This increases to 5 days in 2024, 7 days in 2025, and 10 days in 2026.
• An SSP rate of 70% of their normal daily wages, paid by employers, up to a maximum of €110 per day.

Find out more about SSP, including how to process it, in our Statutory sick pay - general information guide.

Parent's leave

This remains at 7 weeks per year.

What do I need to do in Sage Payroll?

Legislation changes

The legislation changes are included in your payroll year end update, so all you need to do is Download and install the latest version of Sage Payroll. It includes:

• National minimum wage
• Emergency tax SRCOP
• Extension to EWSS
• PRSI threshold changes

 NOTE: For full details about legislation changes for 2023, you can view Revenue's Budget 2023 PDF guide. 

Changes to employees

You must import these via your 2023 tax year RPNs. Use our Retrieve Revenue Payroll Notifications (RPNs) guide to do this. These are issued by Revenue and, if applicable, include the following:

• USC
• PAYE tax credits

You can then start processing your payroll in Set up your software for processing in 2023.

Employment Wage Subsidiary scheme (EWSS) and Employment Wage Subsidy Scheme for Public Health Restrictions (EWSS-PHR)

All payroll related Covid-19 subsidy schemes have now ended, with the last of them, the extended scheme EWSS-PHR, ending on the 31 May 2022.

You can follow the steps in our Updating the Covid-19 subsidy scheme status for all employees guide to disable all employees from Covid-19 subsidy schemes.

National minimum wage (NMW)

From 1 January 2022, the NMW rate increases from €10.20 to €10.50. Our guide to the National Minimum Wage (NMW) in Ireland tells you more.

Pay related social insurance (PRSI)

The PRSI upper threshold for AX increases from €398 to €410 and the lower threshold for AL increases from €398.01 to €410.01.

Pay as you earn (PAYE)

Standard Rate Cut Off Point (SRCOP) increases from €35300 to €36800 for a single person and tax credits increase from €3300 to €3400.

The SRCOP applicable under the Emergency Basis of tax increases from €679 to €708 per week, from €1,358 to €1,416 per fortnight and from €2,942 to €3,067 per month. 

Universal Social Charge (USC)

The second rate 2% upper threshold increases from 20,687 to 21,295.

Parent's leave

This increases to 7 weeks per year.

What do I need to do in Sage Payroll?

Legislation changes

The legislation changes are included in your payroll year end update, so all you need to do is Download and install the latest version of Sage Payroll. It includes:

• National minimum wage
• Emergency tax SRCOP
• Extension to EWSS
• PRSI threshold changes

 NOTE: For full details about legislation changes for 2022, you can view Revenue's Budget 2022 PDF guide. 

Changes to employees

You must import these via your 2022 tax year RPNs. Use our Retrieve Revenue Payroll Notifications (RPNs) guide to do this. These are issued by Revenue and, if applicable, include the following:

• USC
• PAYE tax credits