New year changes for employers to prepare for – HR Buddy
Revenue’s Enhanced Reporting Requirements (ERR) apply in Ireland from 1st January 2024. It requires employers to report details of some payments – “reportable benefits” – including:
- Small benefit– Since January 2022, you can give employees up to two small non-cash benefits each year tax-free – such as gift cards, vouchers, memberships or tickets. They must not exceed €1,000 in total.
- Remote working daily allowance– Employers must now report the total number of days, amount paid and date paid.
- Travel and subsistence– Employers must report reimbursement of business-related travel and subsistence costs, including emergency travel and eating on site.
Pension auto-enrolment begins in Q3 2024
Auto-enrolment, the new retirement savings scheme for Irish employees, is expected to begin in the second half of 2024.
Most employees in Ireland who earn more than €20,000 without a pension scheme already will be automatically enrolled into the new system. Employees and employers will initially each pay 1.5% of gross salary into the scheme, with a state top-up. Contributions will rise over 10 years until they reach 6%.
Other payroll changes in 2024 are:
- Statutory sick leave increases from 3 days to 5 days. January 01st 2024
- Minimum Wage will increase by €1.40 to €12.70 per hour. January 01st 2024
- Parent’s leave will be increased to 9 weeks from August 2024.
Board & Lodgings
If board and/or lodgings i.e., meals and/ or a place to live, is part of the minimum wage then the following amounts can be included to make up the national minimum wage rate:
Amounts for 2023:
- Meals €1.01 per hour worked
- €26.70 for accommodation only per week or €3.81 per day
Increased rates from 01 January 2024:
- Meals €1.14 per hour worked
- €30.00 for accommodation only per week or €4.28 per day
Right to request flexible and remote working to be introduced into law
The right to request remote working and the right to request flexible working under the Work Life Balance Act require a code of practice. This code of practice is currently under development at the Workplace Relations Commission. The Department of Enterprise, Trade and Employment has indicated that work in this regard is ongoing, with a working group meeting regularly in order to complete the code. No set date has been agreed for its finalisation. However, it is widely expected to be introduced in Q1 of 2024.
If your Business requires help, guidance or assistance in the implementation of the above or any other HR expertise, please contact the HR Buddy team. We are here to help.