Employee Financial Wellness, employee wellbeing
Taxation & Workers
- The USC will be cut from 4% to 3% on incomes of €25,000 to €70,000, the second consecutive reduction to the USC rate
- The national minimum wage will increase by 80 cent to €13.50 per hour from 1 January 2025
- Entry threshold to 3% rate increased by €1,622 to €27,382
- The main tax credits – the Personal, Employee and Earned Income Credits – will increase by €125
- The Standard Rate Cut Off Point will increase by €2,000 to €44,000, with proportionate increases for married couples and civil partners
- Inheritance tax will increase for all thresholds – Group A up from €335,000 to €400,000, Group B up to €40,000 and Group C up to €20,000
- Exemption from Income Tax, Capital Gains Tax and Capital Acquisions Tax on payments made to women impacted by CervicalCheck failures
- Free schoolbooks initiative extended to transition and senior cycle pupils
- Funding to continue for the school transport fee reduction and State exam fee waiver
- Continued reduction of student contribution fee by €1,000
- Once-off reduction of 33% in contribution fee for apprentices in higher education
- Post-graduate tuition fee contribution increase of €1,000 for student grant recipients
- Double payments of child benefit in November and December
- Double payment of the foster care allowance
- €400 lump sum payment for working family payment recipients
- €100 lump sum payment per child to recipients of qualified child increase payments
- National childcare scheme funding to rise by 44%, resulting in reduction of fulltime childcare costs by €1,100
- New ‘baby boost’ one-off payment of €420 for each newborn child from 1 January
- Free public transport to be extended to children aged five to eight
- 495 new beds to health services across hospital and community services
- Increased access to IVF and Hormone Replacement Therapy to be free of charge
- Increase in numbers working in health service
- 1,600 additional Special Needs Assistants (SNAs) & 768 extra Special Education Teachers
- 1,000 additional Gardaí & 150 extra Gardaí civilian staff
- 350 additional Irish Prison Service personnel
- 400 additional International Protection Office personnel
- Net increase of 400 Defence Forces members in 2025
- The rent tax credit offered to tenants will rise from €750 to €1,000, and to €2,000 for a jointly assessed couple
- An additional €1.25bn will be made available to the Land Development Agency, bringing the total amount of funding for the LDA to €6.25bn
- Help to Buy scheme will be extended until the end of 2029
- Properties worth over €1.5m to pay 6% stamp duty
- Existing 1% stamp duty to apply to values up to €1m and 2% above €1m
- Relief for pre-letting expenses for landlords extended for three years until the end of 2027 to help vacant property owners bring accommodation into the rental system
- Vacant homes tax increased from five to seven times the property’s existing base Local Property Tax rate
- Energy credit of €250 for all households to be paid in two equal payments, one before the end of 2024 and one after
- Proposal for the 9% reduced VAT rate for gas and electricity to be extended for another six months to 30 April 2025
- Further €300 lump sum payment to fuel allowance recipients in November
- Additional €200 for recipients of the living alone allowance
Increase in VAT Registration thresholds for businesses from:
- €40,000 to €42,500 for service only businesses
- €80,000 to €85,000 for goods and services providers
Excise Duty
- Cigarettes duty increased by €1.00 per pack of 20, pro rata increases will be applied for all other tobacco products
- E-cigarettes: introduction of 50c tax per 50ml of e-liquid to commence mid-2025
- Extension of Young Adult and Student Card to cover adults aged 19-25 to the end of 2025
- Free public transport will be extended to include children aged 5-8 for the first time
- €7.50 increase on current rate of carbon tax on petrol and diesel from €56 to €63.50 per tonne of carbon dioxide emmitted from 9 October
- Including VAT, carbon tax increase represents a rise of around 2.1 cent per litre of petrol and 2.5 cent to a litre of diesel
- Increase on carbon tax levied on other fuels, including home heating, to be brought in from May 2025
- Amendment for battery electronic commercial vehicles so people can qualify for €200 vehicle registration tax rate
- €12 weekly increase for Social Welfare Payments, including pensions
- A €300 lump sum payment for Fuel Allowance recipients will be paid in November
- Additional €200 will be paid for those in receipt of Living Alone Allowance
- €400 once-off payment for recipients of Carer’s Support Grant, Disability Allowance, Blind Welfare Allowance, Invalidity Pension and Domiciliary Care Allowance
- €400 once-off payment for recipients of Working Family Payment
- Carer’s Support Grant will increase by €150, to €2,000
€3 billion from the sale of AIB shares will be allocated as follows:
- €1 billion to Irish Water for non-domestic capital investment
- €1.25 billion to the Land Development Agency for the development of social and affordable housing
- €750 million for the development of the Electricity Grid Network
Sources include: rte.ie
Please note: There may be further changes to the above information following the Finance Bill. Every effort has been made to ensure that the information provided here is accurate and up to date (as of 1st October 2024). The information provided is of a general nature and may not address the specific circumstances of a particular individual. Employee Financial Wellness does not accept any liability arising from any errors or omissions.
Employee Financial Wellness, HR
International Women’s Day
Each year, International Women’s Day adopts a specific theme to focus on various issues affecting women globally. It is a day not only to celebrate the achievements of women but also to highlight the work that still needs to be done to ensure a more just and equal world for all gender identities.
One of the primary concerns faced by women in today’s world is the increasing financial challenges. Women often encounter unique financial burdens, such as health expenses related to women’s health issues like menopause and fertility treatments like IVF. If we look at the financial burden associated with menopause, women often must bear the costs of treatments, medications, and therapies to manage symptoms such as hot flashes, mood swings, and osteoporosis.
Increasing financial challenges women are facing
Moreover, the increasing number of women struggling with the expenses of in vitro fertilization (IVF) and fertility treatments highlights another significant challenge. These treatments can be financially draining and emotionally taxing, making it difficult for women to access the support they need to start or expand their families.
Additionally, the excessive costs of childcare can be a major obstacle for many women, impacting their ability to pursue career opportunities or attend educational programs.
Furthermore, the pressure to balance work and family responsibilities can lead to women reducing their working hours to care for their families, which can have a negative impact on their career advancement and financial stability. These expenses, coupled with the rising cost of living, underscore the importance of financial education tailored to women’s needs.
Employers play a crucial role in supporting women’s financial well-being by providing resources and benefits that address these challenges. By offering initiatives like financial education programmes, employers can empower women to navigate their financial responsibilities more effectively. Recognising the specific financial hurdles that women face and taking proactive steps to provide support can lead to a more inclusive and equitable workplace environment for all employees.
In conclusion, on International Women’s Day and beyond, it is essential to advocate for greater awareness of the financial obstacles that women encounter and the need for tailored support systems. By promoting financial education, offering practical assistance, and fostering a supportive workplace culture, employers can help women achieve greater financial security and overall well-being. Empowering women financially not only benefits individuals but also contributes to a more diverse, inclusive, and thriving society.
Let’s all support and uplift women in our communities and beyond.
As a HR or people and culture leader in the workplace you can help your workforce by helping them to understand how to plan for financial events throughout their lives and be ready for them when they happen.
We’d be delighted to chat to you about our tailored financial education programmes and how they can help, simple contact us here
Employee Financial Wellness, HR
The Impact of Employee Financial Wellness Education on Benefit Awareness and Uptake
In today’s dynamic and competitive job market, employers are recognising the importance of fostering an integrated approach to employee well-being. One critical aspect which is growing in strategic importance is financial wellness. As businesses strive to attract and retain top talent, offering comprehensive employee benefits is essential. However, the success of these benefits depends on employees being aware of and fully utilising them. Enter employee financial wellness education—a powerful tool that not only equips employees with valuable financial knowledge but also enhances their awareness and uptake of company benefits.
The Importance of Financial Wellness:
Financial stress is a pervasive issue that can significantly impact an individual’s overall well-being, including their productivity and job satisfaction. By addressing this stress through financial wellness programmes, employers can create a more engaged and focused workforce. Financial wellness education provides employees with the tools they need to manage their finances effectively, from budgeting and saving to understanding retirement plans and investment options.
The Link Between Financial Wellness Education and Benefit Awareness:
Employee benefits are a crucial component of the overall compensation package. However, the true value of these benefits may go unnoticed if employees are not adequately informed. Financial wellness education bridges this gap by helping employees understand the intricacies of their benefits package. When employees have a clear understanding of the perks offered, including health insurance, pensions, and other supplementary benefits, they are more likely to appreciate and utilise them to their full potential.
Boosting Employee Engagement:
Financial wellness programmes demonstrate a commitment to employees’ personal growth and success, fostering a positive workplace culture. When employers invest in their employees’ financial education, it sends a powerful message that goes beyond the traditional employer-employee relationship. This investment builds trust and loyalty, leading to increased engagement and a sense of loyalty amongst employees.
Improved Productivity and Performance:
Employees burdened by financial stress may struggle to stay focused at work, leading to decreased productivity. Financial wellness education helps alleviate this stress, allowing employees to concentrate on their tasks with a clearer mindset. By proactively addressing financial concerns, employers contribute to a more focused and productive work environment.
Strategies for Successful Financial Wellness Education:
Tailored Programs: Customise financial wellness programs to address the specific needs of your workforce, considering different age groups, life stages, and financial goals.
Accessible Resources: Provide easily accessible resources, such as workshops, webinars, and online tools, to accommodate different learning preferences and schedules.
Regular Communication: Consistent communication is key. Regularly update employees on available benefits and reinforce the importance of financial education in achieving long-term financial security.
Feedback Channels: Establish channels for feedback to gauge the effectiveness of financial wellness initiatives and make necessary adjustments based on employee input.
Employee financial wellness education is not just a perk—it’s a strategic investment in both the well-being of your workforce and the success of your business. By empowering employees with the knowledge to make informed financial decisions, employers can significantly enhance benefit awareness and uptake. The result? A more engaged, satisfied, and productive workforce that contributes to the overall success and growth of the organisation.
Employee Financial Wellness, HR
The key to promoting successful financial well-being in the workplace is consistent communications on relevant channels using a slow and steady approach over the longer term. Here are some strategies to promote financial well-being in your workplace:
- Financial Education Programs: Offer workshops, seminars, or webinars that cover essential financial topics, such as budgeting, saving, investing, and managing debt. Make sure the content is relevant to the environment, considering local tax laws, pension systems, and investment options.
- Retirement Planning Support: Provide resources and guidance on retirement planning specific to the region. This could include information on the Irish pension system, employer-sponsored pension plans, and individual retirement savings options.
- Employee Assistance Programs (EAPs): Include financial wellness in your EAP offerings. Financial Education can help employees address financial concerns and make informed decisions.
- Tailored Benefits and Compensation: Consider offering flexible compensation packages that allow employees to choose benefits that suit their financial needs. This may include options for health insurance, pension contributions, and additional financial perks.
- Financial Wellness Tools: Partner with financial wellness experts that offer tools and resources to help employees track their finances, set financial goals, and access financial planning resources.
- Debt Management Support: Provide information and resources to help employees manage and reduce debt effectively. This could include workshops on debt repayment strategies.
- Clear and Consistent Communication: Be clear and consistent with communication about financial matters. Create a supportive environment where employees feel comfortable discussing their financial concerns and seeking guidance.
- Financial Expertise: Partner with financial education experts, advisors, or organisations to provide specialised guidance and support to employees based on the unique financial landscape of Ireland.
- Leadership Support: Engage senior management and leadership in promoting financial well-being. When leaders actively support these initiatives, it sends a powerful message to employees about the importance of financial health.
- Evaluate and Evolve: Continuously assess the effectiveness of your financial well-being programs through feedback and data. Use the insights gained to improve and refine your initiatives regularly.
Promoting financial well-being in workplaces requires ongoing commitment and effort. By providing the right resources, support, and education, you can empower your employees to achieve financial security and peace of mind. This is good for your individual employees, for your teams and for your organisation.
As experts in the area of employee financial wellness we’re always happy to guide and help you and your team when it comes to employee financial wellness in the workplace.
Employee Financial Wellness, Financial Planning, Financial Stress
Back in June we published a blog titled Cost-of-Living Crisis Still Causing Employees Significant Levels of Financial Stress! In this blog we discussed how people were dealing with the financial strain of the cost-of-living crisis. Now the Competition and Consumer Protection Commission (CCPC) has released a report on financial wellbeing in Ireland.
Using data from 1,505 interviews representing a sample of the Irish population the report presents an overview of Irish financial knowledge, attitudes and behaviour. This report has some interesting findings.
A summary of some of the findings
- 58% people are satisfied with the current financial situation
- 1 in 7 reports too much debt
- 1 in 3 reports that they are “just getting by,”
- Most people believe they can sustain their living expenses for three months or more in the case of a financial shock such as the loss of income, but 1 in 8 say they would just be able to cover their costs for a month or less.
- 86% of households save, with most using deposit or savings accounts.
- 77% of participants said they had access to the State pension with a similar percentage saying that they planned to use a private or occupational pension to fund their retirement
- Around a quarter of respondents said they did not shop around before purchasing a financial product
- There are significant differences between age groups, with those over 60 showing greater financial resilience than those under 30
Kevin O’Brien, a Member of the Competition and Consumer Protection Commission, said about the report. ” It shows a population making sound financial decisions, saving, budgeting, and drawing on information from a range of sources before choosing a mortgage or loan,”
We could take from this that having knowledge of where to look for information, what information to look for and from whom contributes to better financial decisions being made.
Financial education can make a real difference for people when looking to make better financial decisions now and for the future.
Our financial education programmes are designed to educate employees so that they can be in a position to make good financial decisions, see how we do this here.
A full copy of the report can be found on the CCPC website https://www.ccpc.ie/business/
For more information on how our Financial Education Programmes can help your employees contact us here.
Source: https://www.ccpc.ie/business/ccpc-issues-landmark-report-on-financial-wellbeing-in-ireland/, https://www.rte.ie/news/business/2023/0706/1393000-1-in-3-struggling-to-survive-financially-ccpc-report/
Employee Financial Wellness, HR
In recent years, the concept of financial wellness has gained significant attention as individuals and organisations recognise the profound impact of financial stability on overall well-being. Ireland is embracing the importance of financial wellness in the workplace. Here we explore the future of financial wellness in Ireland and how it is transforming the country’s workforce.
The Changing Landscape of Financial Wellness
As societal norms have shifted in the previous 3 years and continue to do so, employees are seeking more than just a pay cheque from their jobs. They desire financial security, opportunities for growth, a path to financial freedom and a work-life balance. Employers are responding by broadening their approach to employee well-being, recognising that financial stress can adversely affect productivity and engagement. The future of financial wellness lies in creating comprehensive programmes that address the holistic needs of employees for the present and the future..
Personalised Financial Education
One-size-fits-all financial wellness initiatives are becoming a thing of the past. The future of financial wellness in Ireland’s workplace lies in personalised approaches that cater to employees’ diverse needs. Employers are recognising the importance of providing targeted financial education and resources to help employees navigate financial challenges, such as budgeting, saving, and planning for retirement. By equipping employees with the necessary knowledge and tools, organisations can empower individuals to make informed financial decisions.
Technology as an Enabler
Technological advancements are revolutionising the landscape of financial wellness. In Ireland’s workplace, digital access to financial education, tools, and resources. These technologies enable employees to access financial information conveniently, track their financial goals, and receive guidance.
Holistic Approach to Well-being
Financial wellness cannot exist in isolation; it is intricately linked to other dimensions of well-being. Forward-thinking employers in Ireland are embracing a holistic approach to employee well-being, recognising the interconnectedness of physical, mental, and financial health. Integrating financial wellness initiatives with existing wellness programs, such as mental health support and physical fitness activities, creates a more comprehensive and impactful employee experience.
Employer-Provided Benefits and Incentives
To attract and retain top talent, employers in Ireland are increasingly offering a wide range of benefits and incentives that promote financial wellness. These include retirement plans, flexible work arrangements, wellness access, and employee assistance programs. By providing these benefits, employers demonstrate their commitment to supporting employees’ financial goals and overall well-being. Such initiatives contribute to a positive work culture and foster a sense of loyalty and engagement among employees.
Conclusion
As Ireland’s workforce evolves, so does the understanding of the importance of financial wellness in the workplace. The future holds great promise as employers prioritise the holistic well-being of their employees by embracing personalised financial education, leveraging technology, adopting a comprehensive approach to well-being, providing attractive benefits, and fostering collaboration. By investing in financial wellness, Ireland is not only transforming its workforce but also creating a healthier, happier, and more prosperous society for all.
We recently held our ‘Future of Financial Wellness in the Workplace’ event which featured a line-up of experts in Financial Wellness as well as HR leaders from some of Ireland’s leading companies who are putting Financial Wellness into practice with their employees. The day resulted in some very helpful tips and insights from our panel of expert speakers on how to implement successful employee financial wellness programmes in the workplace.
If you would like to hear some of these tips and learnings, then simply get in touch with [email protected] and he’ll be happy to share some of the key insights with you and your team.
