Payroll & Tax Updates for 2025
- Standard Rate Tax Bands
- The 20% tax band increases by €2,000 to €44,000.
- Minimum Wage
- Minimum wage rises by €0.80 to €13.50 per hour, effective 1 January 2025.
- Universal Social Charge (USC)
- 4% USC rate reduces to 3%.
- Entry to the 3% USC rate band increases by €1,622 to €27,382.
- Home Carer Credit
- Increased by €150 to €1,950.
- Tax Credits
- Personal, employee, and earned income credits each increase by €125 to €2,000.
- Single Parent Child Carer Credit
- Increased by €150 to €1,900.
- Small Benefit Exemption
- Annual exemption limit for non-cash benefits increases by €500 to €1,500.
- Employers can now provide up to five benefits per year within this total limit.
- Incapacitated Child Credit
- Increased by €300 to €3,800.
- Benefit-in-Kind (BIK)
- Company Car:
- The temporary OMV reduction of €10,000 is extended to 2025.
- Electric vehicle OMV relief of €35,000 continues for 2025.
- E-charging points:
- Exemption extended to cover the installation of charging facilities at employees’/directors’ homes.
- Company Car:
- PRSI Rates
- A 0.1% increase in PRSI contribution rates will apply from 1 October 2025.