Madam, – The recent Budget changes to the health levy have generated some anomalies that many people will be seeing in their May pay packets.
The €500 per week trigger point for liability to pay the health levy at the higher level now means that, for example, your take-home pay is higher from gross pay of €499 in a week than it is if you earn €525. (The health levy is included in payslips within the PRSI charge).
These are very common wage levels. A 35-hour week at €15 per hour generates just this level of gross pay. An employee in such circumstances faces the odd option of asking for a 5 per cent pay cut to increase his or her take-home pay.
Perhaps a more equitable solution might be sought by employers taking an imaginative approach to ensure that their employees are correctly remunerated, while avoiding the €500 to €600 gross pay trap. – Yours, etc,