Irish workers losing paying more than €2K extra a year on income tax than they did in 2008

A normal middle class Irish worker is paying more than €2,000 extra in income tax than they would have in 2008 according to a new study.

The average worker who earns what is deemed as a 'middle class' working wage by the Irish Independent is seeing around 30 per cent of their pay packet being taken away in taxes, which is a sizeable increase on the 26 per cent that was the norm in 2008.

Middle class workers typically earn an average of €55,000 per year, but €16,458 is taken from that wage through various forms of tax. In comparison, €14,340 was being taken in tax back in 2008 at the time of the economy collapsing and before austerity measures kicked in.

One of the main reasons for the hike in income tax appears to be the Universal Social Charge, which now takes €2,318 from a €55K wage packet. That charge was not around in 2008, though there was a government levy that was taking €1,100 in earnings from workers.

The average amount being taken by PAYE payments has stayed at near enough the same level(€11,456 in 2008 compared to €11,940 in 2016), but there has been of more than 25 per cent in the amount being payed towards PRSI, with a jump from €1,784 in 2008 to €2,200 in 2016.

Workers in Ireland on this pay level pay more on income tax than their counterparts in the US, the UK, Spain and Sweden, and the IMF has recently outlined how the ax system in Ireland is hurting those on middle income salaries.