An increase in the single worker's PAYE tax credit is SIPTU's key demand for the Budget, as part of a €1.5 billion tax package.

There must be a recasting of priorities for the Budget in favour of lower-paid workers, the State's biggest union said yesterday. And given the healthy state of the public finances "now is the time to deliver up front the substantial increases in take-home pay that were promised to trade unionists on the eve of ratification of the second half of Sustaining Progress".

The employee - or PAYE - tax credit was increased by €240 to €1,040 in last December's Budget. SIPTU is now seeking a rise of €550 in this credit.

This would benefit all PAYE taxpayers, but would give the most substantial proportionate benefit to many lower- to middle-income earners. The employee credit is a separate credit from the main single person's tax credit of €1,520. SIPTU estimates that the cost of increasing the credit by €550 would be €700 million.

SIPTU is also calling on the Minister for Finance, Mr Cowen, to increase the standard rate tax band, to remove more employees' from the higher 42 per cent rate. An adjustment of €2,500 in the band - now set at €28,000 for a single person - would be required to take the average salary out of the top rate of tax.

A €4,500 increase would be required to restore the situation to that of two years ago when a worker could earn up to €2,000 above the average wage before entering the higher rate, according to SIPTU.

The union is also seeking a tax credit for childcare of at least €20 a week, rising to €50 in the case of receipted costs.

SIPTU has repeated its call for top up increases in child benefit with an added payment to open a new pension account for each child. It wants child benefit raised to €150 per month for each of the first two children and €185 for subsequent children

SIPTU is also calling for general social welfare improvements with a minimum €21 per week increases on standard payments and an increase of nearly €25 per week in the old age pension .