The Irish Budget 2025 – What You Need To Know

From Minimum Wage Rise To A Delay in Pension Auto-Enrolment

by AMANDA | INDUSTRY NEWS

A delay to the Auto-Enrolment Pension Scheme and an increase in the National Minimum Wage are among the key highlights from Ireland’s Budget 2025, revealed by Minister for Finance, Jack Chambers.

Here are the key takeaways:

The Minimum Wage will increase by 80 cents to €13.50 per hour from 1 January 2025.

The Auto Enrolment Pension Scheme is not set to start in September 2025. This has been postponed from January 2025.

VAT registration threshold will rise to €42,000 from €40,000 for the supply of goods and services.

VAT for utilities – currently at 9 per cent – is extended for another six months to 30 April 2025.

Personal, Employee and Earned Income Credits will increase by €125.

The 4 per cent USC rate is reduced to 3 per cent.

The Small Benefit Exemption increases to €1,500 from €1,000. You can provide employees up to three tax-free benefits annually, as long as the combined value doesn’t exceed €1,500 and none are in cash.

The Standard Rate Cot-Off Point has been raised by €2,000 to €44,000, with proportional increases for married couples and civil partners.

Details will also follow on support for the retail and hospitality sector, with a €4,000 flat-rate payment for businesses with a rates bill below €30,000 to be launched.

You can find more details here