Health Levy

A Random Walk

The health levy doubling is the killer stealth tax as far as I can see.

sioda

whats the health levy???

sioda

What is it??

And damn you damn you to hell for getting in ahead of me well maybe not that bad :P

MOD thanks for the merge

tomred1

What is the health levy? is that part of your PRSI?

BOHSBOHS

yup its lobbed in with the prsi on your payslip

average joe paye worker.....
6% (4% + 2% health levy)
will now be
8% (4% + 4% levy)

quite sneaky

A Random Walk

It is part of your PRSI payment for people earning over c. 20k . I heard him say it was doubled which is an extra 2%

johnnyskeleton

And the PRSI threshold was increased.

sioda

cool thanks

dcr22B

Basically, if you're earning €36k, you'll be hit for an extra €30 a month for the income levy and approximately another €55 for the health levy. Just call it bailing the inefficient HSE out! :mad:

shellyboo

This is separate to the Income Levy then? So if you're earning over 20k you're getting hit for 2% health levy plus 2% income levy?

S12

:eek: is that really it???? 55 euro? I thought it was only 2% of a small portion. Some one help me work it out please? My last month's deductions were:
1) Income levy 32.09 2) PAYE 220.93 3) Pension levy 195.94 4) PRSI 150.44 5) Pension 90.61 6) S&C 48.14
Now I know income levy will be 64.18, but what else is hit?

Vegeta

shellyboo wrote: »

This is separate to the Income Levy then? So if you're earning over 20k you're getting hit for 2% health levy plus 2% income levy?

No I think you already pay 2% health levy under the PRSI system but this is doubled to 4%, but yeah its 2% less money but the rate is 4%

So I think for me I will lose an extra 1% to the income levy and 2% to the health levy so a loss of 3%

K-9

shellyboo wrote: »

This is separate to the Income Levy then? So if you're earning over 20k you're getting hit for 2% health levy plus 2% income levy?

You pay it on wages over about €500 per week. Increased from 2 to 4%.

The Income Levy will be on wages of €290 now. There is also no allowance, so you pay it on all income.

It's a snide way of getting people on minimum wage to pay 2% tax.

seamus

For most PAYE workers, they've effectively reduced your take home by 3% on your gross salary. So if you earn €36k p.a., you're going to be €90 poorer per month.

K-9

S12 wrote: »

:eek: is that really it???? 55 euro? I thought it was only 2% of a small portion. Some one help me work it out please? My last month's deductions were:
1) Income levy 32.09 2) PAYE 220.93 3) Pension levy 195.94 4) PRSI 150.44 5) Pension 90.61 6) S&C 48.14
Now I know income levy will be 64.18, but what else is hit?

Don't quote me, but my understanding is the Income levy part will double.

Your PRSI will take a fair jump too, maybe another €50.

gurramok

Yeh, very sneaky http://www.budget.gov.ie/2009SupApril09/downloads/Annex%20A%20-%20Details%20of%20Income%20Levy%20Health%20Levy%20&%20PRSI%20changes.pdf

Earn between 26k and 75k, you pay 4% health levy plus 2% income levy.

So if you are on 34k, your effective income tax rate has gone up from 20% to 26% since these 2 budgets came.

dcr22B

S12 wrote: »

:eek: is that really it???? 55 euro? I thought it was only 2% of a small portion. Some one help me work it out please? My last month's deductions were:
1) Income levy 32.09 2) PAYE 220.93 3) Pension levy 195.94 4) PRSI 150.44 5) Pension 90.61 6) S&C 48.14
Now I know income levy will be 64.18, but what else is hit?

You're public sector so I'm not sure how it works for you guys.

On the subject of the public sector, can someone clarify a point for me:

I have a copy of the SW14 document showing "Main PRSI changes for 2009" and in it I noticed that on Class A1 we pay 6% PRSI (soon to be 8%) on any income of €127 pw or over whereas those on the public sector equivalent Class B1 pay 2.9% (soon to be 4.9% I would presume).

By the way, this Class B1 applies to doctors, dentists and Gardai recruited before 1995. Now I'm not saying these jobs are probably harder than private sector employments.

So am I right in saying that specific public sector employees pay 3.1% (or 52% in comparison) less than us private sector employees and many of their public sector counterparts??

If this is the case then we are subsidising certain parts of the public sector even more so than their own employees??? Surely that's not equitable.

Gran Hermano

So a 6-10% total drop in my salary compared to last year whilst the long term
unemployable only give up their 'double dole' at Christmas.

Great work FF/Greens, way to rewarded the taxpayers and workers.

S12

Wow, this is mental. I thought in times of crisis certain area were supposed to be slashed to stimulate the economy? Everyone is down a fair bit now and I know I'll be trying to salvage it from somewhere! I'm down 10% in two months with the pension levy and this
DCR226: i actually have never heard about waht you are questioning, but if its any consolation my payslip says PRSI class A1

Scooby_Doo

Great job from our fantastic Government....

ECB reduces out mortgages so we have more cash to spend in the economy, then these idiots take it back before it even hits our wallets!

Well well, easy come easy go!!

dcr22B

S12 wrote: »

Wow, this is mental. I thought in times of crisis certain area were supposed to be slashed to stimulate the economy? Everyone is down a fair bit now and I know I'll be trying to salvage it from somewhere! I'm down 10% in two months with the pension levy and this
DCR226: i actually have never heard about waht you are questioning, but if its any consolation my payslip says PRSI class A1

Sorry S12, I've edited my post to highlight who is covered by the difference.

I'll PM you what I think your new PRSI rate might be.

K-9

dcr22B wrote: »

You're public sector so I'm not sure how it works for you guys.

On the subject of the public sector, can someone clarify a point for me:

I have a copy of the SW14 document showing "Main PRSI changes for 2009" and in it I noticed that on Class A1 we pay 6% PRSI (soon to be 8%) on any income of €127 pw or over whereas those on the public sector equivalent Class B1 pay 2.9% (soon to be 4.9% I would presume).

So am I right in saying that public sector employees pay 3.1% (or 52% in comparison) less than us private sector employees??

If this is the case then we are subsidising the public sector even more so than their own employees??? Surely that's not equitable.

I think that is for pre95 entrants, post 95 entrants pay the same rate as you.

How the pay scales were adjusted to offset this is another story!

From here:
http://www.budget.gov.ie/2009SupApril09/SummaryofSupplementaryBudgetMeasuresPolicyChanges.html#PensionDeduction

It appears it's the Income levy threshold that has been changed. Everybody over €15,026 pays it. So now people on the minimum wage pay 2%.

The Health levy threshold is still €500 per week, but the rate is now 4, not 2%.

Riskymove

dcr22B wrote: »

By the way, this Class B1 applies to doctors, dentists and Gardai recruited before 1995. Now I'm not saying these jobs are probably harder than private sector employments.

So am I right in saying that specific public sector employees pay 3.1% (or 52% in comparison) less than us private sector employees and many of their public sector counterparts??

If this is the case then we are subsidising certain parts of the public sector even more so than their own employees??? Surely that's not equitable.

I don't know wehat you mean when you ask are we "subsidising" them?

Basically those public servants pre-95 are on a different rate of prsi which is lower and therefore they don't pay as much as those of us who pay A rate.....


...but....they don't get any of the benefits of A rate such as dental and glasses subsidies etc

dcr22B

Thanks for clarifying that for me Riskymove and I don't want my post to be seen as an attack on my public sector counterparts, it just struck me as something quite strange and in need of explanation for my own peace of mind.

Riskymove

dcr22B wrote: »

Thanks for clarifying that for me Riskymove and I don't want my post to be seen as an attack on my public sector counterparts, it just struck me as something quite strange and in need of explanation for my own peace of mind.

No probs...I wasn't seeing it as an attack i just couldn't see what you were asking?

efb

Anyone whose taxable income is greater than 25K is subject to the health levy on all A grade PRSI.
Anyone under it is not. If your income does not exceed 25K in the year, but you paid the levy during the year (as you exceeded the threshold for that pay period) you are entitled to a refund. It will take some time to get it back!