Tax-free pandemic bonus
Deputy McNamara asked whether organisations could pay a tax-free pandemic bonus without staff losing much of it to tax, and whether the Minister had answered. The Tánaiste said he had asked the Finance Minister to examine the issue and that he would look at it, but no firm answer had yet been given.
I will return to the issue of the €1,000 bonus. Obviously, it will require legislative change to ensure it is tax free and that a chunk of it is not taken out from either the employer's or the employee's contribution. Will that legislative change include organisations that wish to pay it, where they deem that their employees or even their volunteers put themselves at huge risk at the time? I am not asking if the State will pay this money but whether organisations that determine their employees come within this description will be able to pay that money without them or their employees having to give a large chunk of it to the Government.
Comment on this
I have asked the Minister for Finance, Deputy Donohoe, to examine that as part of the legislation. Employers have approached me, as Minister for Enterprise, Trade and Employment, and have told me that they want to pay their staff a pandemic bonus from their own resources, but that if they do so their staff could lose perhaps half of it in tax. I have asked the Minister, Deputy Donohoe, to examine that as an option. It is already possible for employers to pay up to €500 per year in the form of a bonus that is tax free, but it has to be done in a particular way and it cannot go above €500. Perhaps, as a one-off measure, we might allow that to go to €1,000. I have asked the Minister to look at that in the context of that law.
Comment on this
Did he give the Tánaiste an answer?