Cowen: '1% levy won't apply to workers on minimum wage'

The Government announced this afternoon that the 1% income levy unveiled in the budget will not apply to those on the minimum wage.

The planned levy has come in for considerable criticism since it was announced last week.

Taoiseach Brian Cowen told the Dáil this afternoon that the decision to change the parameters of the levy followed representations from the Irish Congress of Trade Unions:

“While the government believes that it's not unreasonable that everyone should make a contribution, however modest, in accordance with their income in these difficult times, we are prepared in the context of the importance which we attach to social partnership and to the draft agreement to provide in the finance bill that the levy will not apply to incomes up to the level of the national minimum wage.”

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