Taxes on businesses to fund education budget increases

A significant proportion of increased education funding in Budget 2018 is expected to come from businesses rather than the general taxation system.

Businesses can expect to pay a higher rate of employers’ PRSI, as the Government seeks to add close to €200m to the National Training Fund (NTF) to invest in further and higher education.

A consultation this year, announced in Budget 2017 a year ago, set out the proposal to increase the amount employers pay into the fund from 0.7% of each worker’s pay to 1% over three years. This could see the figure rise by 0.1% next year, and again in 2019 and 2020.