Unemployed hit as redundancy levy backdated

A “REDUNDANCY rip-off” has been imposed on the unemployed as swingeing rises in income levies announced in the budget are effectively backdated to the start of the year, Fine Gael warned last night.

The outrage came as the Government was thrown onto the back foot over claims it had tried to fool voters by announcing long-service payments for TDs were to be abolished.

While PAYE wages will not be affected before May 1, lump sums, including add-ons to statutory redundancy paid in the first four months of the year will be liable to a higher levy than before the budget as the Department of Finance moves to bring in an average percentage level for the year. While statutory redundancy payments are exempt from the income levy, many of those taking voluntary redundancy will pay the tax on part of their lump sum.