BY JOHN ELLIS, FINANCIAL ADVISOR
My first summer job was in a meat factory. I spent most of that summer up in the roof above the boning hall making boxes. I cannot remember what I was paid but still remember the thrill of getting my first wage in a little brown envelope.
Just as in the Seventies and ever since, the summer job is a must for most young people. Back in the day I rocked up to the factory, asked for the man who did the hiring and was hired on the spot. Today getting a job is not as simple as asking “at the gate” for work. Now you and your prospective employer must navigate a framework of rights, duties, and responsibilities.
The Protection of Young Persons (Employment) Act 1996 outlines work hours and rest breaks for young workers applying to anyone working for an employer who is not a close relative.
According to Tulsa, children between the ages of 14 and 18 can engage in part-time work during the summer. Fourteen and 15-year-olds are restricted to “light work” during school holidays, to a maximum of 35 hours a week. They must get up to 21 days off work during the summer holidays while 16 and 17-year-olds can work up to 40 hours a week, albeit with some restrictions.
During the working day under-16s must receive a half-hour break after four hours of work and, if on shift work, must have 14 consecutive hours off between shifts, along with two days off each week. No work before 8 am or after 8 pm. For 16 and 17-year-olds, the break extends to every 4.5 hours of work, and they must have 12 hours off between shifts. They cannot work before 6 am or after 10 pm
Under-18s are entitled to a minimum wage of €8.89 an hour, equivalent to 70% of the national adult minimum wage. Eighteen-year-olds earn €10.16, 19-year-olds can make €11.43, and those older than 20 earn €12.70 an hour but employers can pay more if they wish.
I remember the disappointment of my first pay pack as nearly all – as far as I was concerned – was gone on tax; the idea of emergency tax meant nothing to me at that time of my young life.
Many feel any tax on “a little summer job” is not on, but unfortunately your first pay may be taxed at the “emergency tax” rate. Students typically working part-time or earning under €13,000 in a year will not pay tax or USC, but PRSI at 4% will be deducted from anyone older than 16 earning more than €352 gross a week.
So, to avoid emergency tax, you should provide your employer with your Personal Public Service (PPS) number as soon as possible and register for PAYE in myAccount on Revenue’s website under the Jobs and Pensions option.
Meanwhile, John Lowe’s book, Teenagers: You and Your Money is a terrific book to have as it outlines and advises on sorting out your tax.
He also emphasises that, regardless of age, as soon as a person takes up a job, they should be involved in household budgeting discussions to instil a realistic understanding of income, expenses, and saving. (Long hand for you need to give up a portion to Mammy)
A summer job offers more than just a paycheck; you will probably make friends for life and learn lessons in financial responsibility. It will give an early understanding of taxation and the realisation of how many hours you must put in to get that prized item of clothing or whatever is your hearts desire.
Good luck all…
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