Anger as ‘paltry’ €2,000 incentive scheme for new teachers will be taxable

Teachers’ union says new measure will have negligible impact on teacher supply

The €2,000 payment is aimed at refunding training costs of up to €15,750.
The €2,000 payment is aimed at refunding training costs of up to €15,750.

A new €2,000 payment for newly qualified teachers – aimed at refunding training costs of up to €15,750 – will be taxable and deducted from their pay checks.

The Teachers’ Union of Ireland (TUI) said it means most eligible teachers will receive only half of the €2,000 payment in their take-home pay. It described the decision to tax the payment as “piecemeal and paltry” which will have a “negligible impact” on teacher shortages.

The payment, announced in the last budget by Minister for Education Norma Foley, is aimed at tackling teacher shortages by incentivising graduates to stay in the profession and refunding some of the cost of the two-year Professional Master in Education (PME) qualification.

Details of the scheme were confirmed through a new Department of Education circular which confirms that the payment will be made next year, subject to statutory deductions through the teacher payroll.

READ MORE

Those eligible include teachers who completed a PME programme in the 2024 calendar year and who teach for a minimum of 109 days at primary level or a minimum of 100 days, or 440 hours, at post-primary level in the current academic year.

TUI general secretary Michael Gillespie said the union had advocated for the benefit to be administered as a fee refund scheme for teachers rather than through payroll.

“Regrettably this request, which would have prevented against an already small amount being further reduced through statutory deductions, fell on deaf ears,” he said.

The union wants a range of measures to tackle teacher shortages such as restoring career structures cut during recession, halving the two-year duration of the PME; eliminating red tape that hinders Irish teachers working overseas in returning to take up positions in Ireland; and tackling “ever-increasing workloads”.

Ms Foley has described the €2,000 payment as an incentive scheme to support teacher supply measures, assist graduates with costs and encourage candidates to consider a career in teaching.

A spokesman for the Department of Education said the level of income tax payable will be determined by individual circumstances.

“In many cases a newly qualified primary teacher currently earn a starting salary of almost €43,000, while a post-primary teacher will earn over €44,000. While the Department cannot confirm the level of income tax that will be deducted, given that individual circumstances will affect the level of deduction, the payment will be subject to income tax,” he said.

Ms Foley has also pointed out that there are now more teachers than ever are working in the Irish education system and pointed to a range of measures aimed at boosting teacher supply such as increased graduate numbers, upskilling programmes and pay increases.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent