TOM is a 20-year-old semi-skilled factory operative, working for a local electrical manufacturer. He is single and shares a house with two friends, thus qualifying for the £500 rent allowance introduced in the previous Budget.
Tom was laid off for two months last summer and expects to be laid off for a similar period this summer. Last year, he received social welfare payments for the two months which were taxed apart from the first £10 per week. He went to Greece for a fortnight. The tax exemption of the first £10 per week of his social welfare payments has been renewed and the payments will be increased by 3 per cent.
His gross income will rise from £8,733 to £8,749. His net income after tax and other deductions will increase from £6,943 to £7,216 - a £237 increase due mainly to lower PRSI.
Tom has benefited from the weekly PRSI exemption limit rise from £50 to £80 and from the increase in thresholds for the Heath Levy and the Employment and Training Levy. The threshold for both levies has increased to £188 per week from £178 per week, while Tom's weekly wage is £187.
Tom's 20 cigarettes a day will cost him about £36.50 extra a year.