Part-time workers on minimum wage will have salaries reduced under new budget plans

People working a part-time job on minimum wage will likely have their salary reduced, according to the salary and hr platform Youforce, based on their own calculations after the Budget Day plans were revealed.

Youforce looked at the effect that the plans will have on the salaries of people working 24 to 32 hours a week on minimum wage. They will have between 5.16 and 11.83 euros less left from their gross monthly salary, according to the payroll service provider.

Youforce CEO Stefan Op de Woerd said the change is the result of adjustments to payroll tax credits. The employment tax credit, which forms part of the overall payroll tax credit, is relatively low for people on lower incomes. The income threshold for the lower rate has also been shifted slightly.

Full-time employees working 40 hours a week on the minimum wage are expected to see their net monthly pay increase by 17.17 euros. However, Youforce noted that the estimate is not final. The minimum wage will be adjusted for inflation on January 1, and that increase has not yet been factored into the calculations.