Take action: No extra tax burden for new mothers
Published: Monday, April 29, 2013
The NWCI has launched a campaign calling on Minister Noonan to exempt women who do not receive a full salary top-up from their employer from the proposed tax on maternity benefit.
The Minister for Finance, Michael Noonan, announced his intention to bring maternity benefit in to the tax net as part of his proposals in Budget 2013. Depending on tax rates, mothers can except to lose up to €2,7000 in income. Women who are on low and middle incomes and do not get a full top-up salary payment from their employers will be hit hardest by this measure, putting them under severe financial pressure.
Maternity Benefit is a payment made to women who are on maternity leave from work and covered by social insurance (PRSI). The benefit is paid depends on the person's earnings, and ranges from €217.80 to €262 per week for a maximum of 26 weeks.
Up to now Maternity Benefit has not been regarded as income for the purposes of the Income Tax Acts and is disregarded for all tax purposes. The exemption was supported by the Commission on Taxation because it allows mothers to remain outside the workforce for a period of time to nurture their newborn children.
Participate in the NWCI campaign which calls on you to contact your local TDs and make your opposition known.