Workers earning up to €60,000 will as from next year start receiving a partial refund of their tax, but tax brackets will not be touched, the Finance Minister announced in the Budget speech this evening.

All workers will receive cheques of between €40 and €68 as part of a promise made by the Labour Party in the last general election. The government intends to increase refunds in the following years.

Cheques will also be issued to workers who do not pay income tax.

Higher pensions

All pensioners, whether on a contributory or non-contributory pension, will get a flat €2 weekly increase.

A raise will also be given to those receiving an invalidity pension.

The threshold on non-taxable pensions will rise to €13,200 from the current €13,000. Other pensioners will benefit in a rise of their threshold pro-rata.

The government will also introduce a new system for the calculation of pensions when social security contributions are missing.

READ: This online calculator will help you calculate your pension

The minister also announced that the government will issue yet another €10m tranche of government stocks available for those aged 62 and over.

The government will also be allocating more funds to settle historic injustices suffered by various categories of workers such as those in labour corps and the port workers. More policemen will be paid their dues for overtime worked.

€5 million are being allocated for further refunds of VAT paid on vehicle registration.

The self-employed and SMEs will also have the threshold of VAT-exempt revenue raised from €14,000 to €20,000.