Budget 2025: Payroll Summary

Standard Rate Tax Bands

The standard rate tax band (currently 20%) will increase by €2,000 to €44,000.

Minimum Wage

Minimum wage will increase by 80c to €13.50 per hour with effect from 1 January 2025.

Universal Social Charge (USC)

The 4% rate of USC will reduce to 3% and the entry level to the 3% USC rate band has been increased by €1,622 to €27,382.

Home Carer Credit

The home carer credit increased by €150 to €1,950.

Tax Credits

Personal, employee and earned income credits each increased by €125 – from €1,875 to €2,000.

Single Parent Child Carer Credit

The single parent credit increased by €150 to €1,900.

Small Benefit Exemption

The limit for the provision of non-cash benefits by employers was increased by €500 to €1,500 per annum with up to five such benefits allowed up to this limit.

Incapacitated Child Credit

Incapacitated child credit increased by €300 to €3,800.

BIK Company Car

The temporary OMV €10,000 reduction was extended to 2025 for company provided vehicles – this is in addition to the electric vehicle OMV relief of €35,000 for 2025. 

The BIK exemption for e-charging points on business premises has been extended to the installation of facilities at the home of employees/directors.

PRSI Rates

A further increase in PRSI contribution rates of 0.1% from 1 October 2025 had been previously announced.