The long-awaited Budget 2023 was announced on Tuesday as many households around the country looked to see what new measures would benefit them.
Thousands of people have been struggling to make ends meet after rising rates of inflation further increased the cost of living.
Government officials aimed to provide some much-needed measures in this year's Budget to help relieve some of the strain on Irish people.
Increases in tax credits, a higher threshold for the PAYE's upper tax band, and minor adjustments to PRSI and USC were all announced by Minister for Finance Paschal Donohoe on Tuesday, but these changes will affect people differently depending on their income.
That said, here is what the Budget means for those earning €40,000 or less.
PAYE
One of the main changes in Budget 2023 for a person earning €40,000 or less will be to PAYE.
The Government decided to change the entry point for the higher tax band rate. It has now been increased by €3,200, meaning a smaller proportion of income will be subject to the higher tax rate.
Personal tax credits and employee tax credits will also see an increase of €75 each, making them worth a total of €1,775 each.
A person earning €40,000 will pay €790 less than in previous years, decreasing from €5,240 to €4,450.
PRSI
On the other hand, changes to PRSI in Budget 2023 will not affect those earning €40,000 as it will remain at €1,600.
USC
Some changes have also been made to the USC.
This was done to account for the rise in the minimum wage, with the band for the second USC rate increasing from €21,295 to €22,920.
Meaning USC tax on an income of €40,000 would be charged as follows as 0.5 per cent on the first €12,012, equally €60, 2 per cent on the amount between €12,012 and €22,920, totalling €218 and 4.5 per cent on the remainder up to €40,000, equally €769.
The change will save workers around €40 compared to 2022.
Tax changes altogether will see single people on a salary of €40,000 save around €830.
While a married person's savings depend on whether they and their partner file their taxes together or separately and whether their household has one or two incomes.
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