Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I thank the Minister for taking up that suggestion.

The concern in this regard is there is a lack of awareness of what the liability will be for employees in the first instance. It could be substantial, particularly if it is extended. We also know that those benefitting mostly from the TWSS and the PUP are those in low-income sectors. Those hit hardest as a result of the pandemic are in hospitality and tourism, where the average income is quite low. In terms of accommodation and food, for example, their spend is just under €350. Other sectors, such as retail, are also /low income.

When these tax liabilities are spread over 2021, it means, in effect, a net wage cut for the employee. It is a cut in take-home pay because the person's tax liability will be higher. As the Minister discussed with my colleague earlier, employers are reducing wages as well. We can see from official figures that a 7% reduction in weekly take-home pay is the average. There may be a need to consider setting a maximum tax liability that an employee should have to take in a certain month. We need more clarity on this. In social welfare, for example, where there is an overpayment, whether it is a mistake by the Department or by the individual, a maximum amount can be deducted from a social welfare. We need to give certainty to employees that Revenue will not take more than X per week. Next year we will continue to deal with the pandemic. This will have an impact on take-home pay. Many of these employees are struggling week-to-week, whether with mortgage costs or rent costs, insurance costs, crèche costs, etc.

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