With the announcement of Budget 2023 just around the corner, Government officials have hinted that income bands for the higher rate of tax will be expanded.
The move could see workers earning an annual salary of €50,000, taking home at least €500 extra.
Finance Minister Paschal Donohue is expected to increase the 40 per cent income tax band by €2,500, meaning workers won't have to pay the higher tax rate on any earnings below €39,500.
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Under the new measures, a 20 per cent tax rate will be applied to all income under €39,300.
Changes to tax credits are also predicted to be announced.
These will include the introduction of a tax credit for renters, which could save them up to €1,440 annually and a reduction in tax paid by landlords in an effort to stop landlords from leaving the rental market.
Property owners have called for the tax rate on rent to be reduced to 25 per cent from 50 per cent.
Budget 2023 is also expected to see the minimum wage increase by a further 80c bringing it to a total of €11.30 per hour.
This will be the second year in a row it has been given a boost after officials raised the wage at the beginning of 2022 by 80c to its' current rate of €10.50 an hour.
The plans look to introduce a living wage to replace the minimum wage with the aim of it being €13.70 per hour by 2026.
A substantial social welfare package is also expected to be announced next week.
An increase of €15 had been discussed, but it is believed that a €10 increase could be a more realistic expectation.
A bonus social welfare payment made before December is also under consideration, which would be separate from the Christmas bonus.
Finance Minister Paschal Donohoe is also working on the proposal to increase the tax-free bonus amount an employer can give an employee from €500 to €1,000 annually.
Under current rules, employees can only receive a benefit of €500 in value, tax-free, each year from their employer.
This benefit must not be in cash but can be in the form of vouchers or cards that can be used to purchase goods or services.
Other proposals also being considered include a double payment of social welfare, Child Benefit and a one-off double Working Family Payment.
For example, those in receipt of child benefit payments could be in line for a €280 one-off payment if they have one child or €560 if they have two.
If the Government agrees to the policy, parents will receive a huge boost, with a family with three children eligible to receive €840.
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