Full list of cash boosts and social welfare changes for workers in 2025
January is always a time for big changes, from switching up your lifestyle to forcing yourself to stick to New Year’s resolutions. However, there are also some major financial changes happening right now, with several Budget 2025 measures finally coming into effect. While you might hear a lot about social welfare boosts, there are also many different things coming into effect that will impact workers too. Here is everything you need to know: Social welfare increases It was decided that the maximum weekly rate of Maternity Benefit, Adoptive Benefit, Paternity Benefit and Parent’s Benefit will increase by €15, while all other weekly social welfare payments will increase by €12 with proportional increases for qualified adults and people on reduced rates of payment. Domiciliary Care Allowance Domiciliary Care Allowance is a monthly payment for a child aged under 16 with a severe disability. It is not means-tested, so you may qualify for it regardless of your income. The Domiciliary Care Allowance will go from €340 per month to €360 per month from January 2025. Working Family Payment Working Family Payment is a weekly tax-free payment for employees with children. It supports people who are on low pay. You must be an employee to get it. You cannot get it if you are self-employed only. Here are the new Working Family Payment income limits for 2025: The income limit for one child will go from €645 to €705 The income limit for two children will go from €746 to €806 The income limit for three children will go from €847 to €907 The income limit for four children will go from €938 to €998 The income limit for five children will go from €1,064 to €1,124 The income limit for six children will go from €1,180 to €1,240 The income limit for seven children will go from €1,316 to €1,376 The income limit for eight children or more will go from €1,412 to €1,472 Employment programmes People on Community Employment (CE), Tús and the Rural Social Scheme will get an increase of €12 per week. People on the Work Placement Experience Programme will get an increase of €24 per week. Small benefit exemption Employees can get some vouchers or other non-cash benefits each year without paying tax on them. From 1 January 2025, there will be an increase in the maximum exemption, from €1,000 to €1,500. This can include up to 5 non-cash benefits per year (an increase from 2 benefits per year). Minimum wage The national minimum wage will increase by 80 cents to €13.50 per hour from 1 January 2025. Income tax and Universal Social Change (USC) Income tax rates will stay the same (at 20% and 40%), but there will be increases to tax credits and changes to the income tax bands in 2025. The standard rate tax band (the amount you can earn before you start to pay the higher rate of tax) will be increased by €2,000 to €44,000 for a single person, with proportionate increases for married couples and civil partners. The following tax credits will increase by €125 to €2,000: Personal Tax Credit Employee Tax Credit Earned Income Tax Credit The 4% rate of Universal Social Charge (USC) will be reduced to 3% from 1 January 2025. The entry point for this rate will increase by €1,622, in line with the increase to the national minimum wage, so it will apply to income between €27,382 and €70,044. You can find more specific Budget 2025 changes here. For all the latest news from Dublin and surrounding areas visit our homepage. Join our Dublin Live breaking news service on WhatsApp. Click this link to receive your daily dose of Dublin Live content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.
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