Budget 2022 | Higher threshold for in-work benefit announced

Finance Minister announces higher in-work benefits threshold for working parents • New scheme for workers with ‘atypical’ hours announced

An increase in in-work benefit thresholds was announced by Finance Minister Clyde Caruana.

The in-work benefit scheme applies to parents who work, and whose children are 23 or younger.

For working couples, the annual threshold will be increasing to €55,000 from €35,000. For couples where only one parent is working, the threshold will rise to €26,000 from €35,000.

The threshold for single parents who work will increase to €35,000 from €23,000.

Caruana said around 7,000 will be benefitting from the scheme, with a minimum amount of €200 being received by those who are eligible.

A new in-work benefit scheme was also announced by Caruana for workers who work “atypical hours”. These workers will be receiving €150 yearly through the new in-work benefit scheme.  This measure will apply to workers who work weekends and late hours.

It will also apply to workers in the private sector who work in the accommodation and service sector, administrative and support services, manufacturing, transport and the wholesale and retail sector.

Workers who are eligible for the new scheme need to have been working in their respective sector for more than six months.

Caruana said around 40,000 workers will be benefitting from the scheme, with the amount received equivalent to around 10% of their yearly income tax.