2024 brings a series of significant updates that will impact financial planning and employee management
In this brief overview, we will discuss the key changes set to take effect in 2024, covering a range of topics including the Cost of Living Adjustment (COLA), revisions in the Minimum Wage, updates to Vacation Leave Entitlement, alterations in Tax Rates, and adjustments in Social Security Contributions as well as Maternity Trust Fund Contributions. Understanding these changes is essential for ensuring a smooth transition into the new year and maintaining compliance with the latest regulations.
Up-Coming Deadlines
The Year-End Process covers the submission of an Annual Statement of Earnings (FS3) for each employee employed during the year, and the Annual Reconciliation Statement (FS7).
The FS3 is issued for each individual employee, showing the gross salary, along with any fringe-benefits, taxes, social security and maternity fund contributions paid. The FS7 is a reconciliation of the monthly taxes, social security and maternity fund contributions paid by the company each month through the FS5s.
The totals of all the FS3s issued by the company would be equal to the FS7 for the year.
The submission date for the above annual statements (FS7 & FS3s) covering 2023 is the 15th of February 2024.
Changes for 2024
- Cost of Living Adjustment
- New Minimum Wage Legislation
- Vacation Leave Entitlement
- Updated Tax & Social Security Rates
COLA
The Cost of Living Adjustment (COLA) for 2024 is of €12.81 per week, amounting to €666.12 per annum for full-timers. This is equivalent to €0.32 per hour for part-timers. All employers must increase employees’ salaries to reflect COLA. Salary increments cannot be lower than COLA.
Minimum Wage
The Cost of Living Adjustment (COLA) for 2024 is of €12.81 per week, amounting to €666.12 per annum for full-timers. This is equivalent to €0.32 per hour for part-timers. All employers must increase employees’ salaries to reflect COLA. Salary increments cannot be lower than COLA.
| Age | Weekly Wage |
| Age 18 years and over | €213.54 |
| Age 17 years | €206.76 |
| Under 17 years | €203.92 |
For part-time employees, pro-rata of the above figures applies. For example, the hourly minimum wage for a person above 18 years of age is €5.34.
Vacation Leave Entitlement
The vacation leave entitlement is comprised of the basic leave entitlement being 192 hours and Public Holidays which fall on weekend.
In 2024, full-time employees are entitled to 240 hours of vacation leave (30 days). This is the 192 hours of basic leave entitlement plus 48 hours in respect of the 6 public holidays which fall on weekends.
Tax Rates
The below indicates the income tax rates applicable on chargeable income for the basis year 2023.
| From | To | Rate | Subtract |
| Single Rates | |||
| 0 | 9,100 | 0% | 0 |
| 9,101 | 14,500 | 15% | 1,365 |
| 14,501 | 19,500 | 25% | 2,815 |
| 19,501 | 60,000 | 25% | 2,725 |
| 60,001 | And over | 35% | 8,725 |
| Married Rates | |||
| 0 | 12,700 | 0% | 0 |
| 12,701 | 21,200 | 15% | 1,905 |
| 21,201 | 28,700 | 25% | 4,025 |
| 28,701 | 60,000 | 25% | 3,905 |
| 60,001 | And over | 35% | 9,905 |
| Parent Rates | |||
| 0 | 10,500 | 0% | 0 |
| 10,501 | 15,800 | 15% | 1,575 |
| 15,801 | 21,200 | 25% | 3,155 |
| 21,201 | 60,000 | 25% | 3,050 |
| 60,001 | And over | 35% | 9,050 |
Social Security Contributions and Maternity Trust Fund Contributions
The below indicates the contributions applicable with effect from 1 January 2024. These are revised each year in proportion to the new minimum wage.
| Basic Weekly Wage1 | Weekly Rate Payable2 | |||||
| Category | From | To | By Employee | By Employer | Total | Maternity |
| A | 0.10 | 213.54 | 6.62 | 6.62 | 13.24 | 0.20 |
| B | 0.10 | 213.54 | 21.35* | 21.35 | 42.70 | 0.64 |
| Persons born up to 31st December 1961 | ||||||
| C | 213.55 | 423.07 | 10% | 10% | n/a | 0.30% |
| D | 423.08 | n/a | 42.31 | 42.31 | 84.62 | 1.27 |
| Persons born from 1st January 1962 | ||||||
| C | 213.55 | 532.28 | 10% | 10% | n/a | 0.30% |
| D | 532.29 | n/a | 53.23 | 53.23 | 106.46 | 1.60 |
| E | n/a | n/a | 10% Max of 4.38 | 10% Max of 4.38 | n/a | 0.3% Max of 0.13 |
| F | n/a | n/a | 10% Max of 7.94 | 10% Max of 7.94 | n/a | 0.3% Max of 0.24
|
*Or if the employee chooses, 10% of the basic weekly wage. This rate of contribution entitles the contributor to pro-rata contributory benefits.
1 Or the weekly equivalent of the basic monthly salary.
2 For percentage rates, the weekly rate payable is calculated to the nearest cent.
| Category | Description |
| A | Persons under 18 years of age earning not more than amount indicated. |
| B | Persons aged 18 and over, earning not more than the amount indicated below. |
| C | All persons whose basic weekly wage is between the amounts indicated below. |
| D | All persons whose basic weekly wage is equal to or exceeds the amount indicated below. |
| E | Students* under 18 years of age. |
| F | Students* 18 years old and over. |
*Students who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes involving distinct work and study periods for which they are receiving remuneration.
Our payroll team are here to assist with all of your payroll requirements, including but not limited to,
- Registering the company as an Employer with the relevant authorities,
- Registering of any new employees with Jobsplus and Tax Authorities,
- Calculating the monthly payroll, being payslips for employees and FS5s to be submitted and paid to the CfR,
- Preparation and submission with year-end FS7 and FS3s
- Leave management system for staff synced with our payroll software
- Payroll advisory services
Get in touch today on la@zampapartners.com!
Lisa Apap
Senior Accounting Team Leader
