With the introduction of Budget 2025, your payslip may look a little different this year. Several tax and income-related adjustments have taken effect from January 1st, and it’s important to check your payslip to ensure you’re receiving the correct benefits. Here’s what to look out for:

Income Tax:

• The standard rate band has increased by €2,000, now set at €44,000 for single individuals.
• If you earn up to this amount, you’ll continue to pay 20% income tax, with proportionate increases applied for married couples and civil partners.

Universal Social Charge:

• The 4% USC rate has been reduced to 3% on incomes between €25,000 and €70,000.
• If your income falls within this range, you should see a small reduction in the USC deducted from your salary.

Tax Credits:

• Personal, employee, and earned income tax credits have increased by €125 each, now totalling €2,000 per credit.
• If you’re a PAYE worker, this will reduce your overall tax liability, resulting in slightly more take-home pay.

Small Benefit Exemption:

• The tax-free benefit for non-cash perks, such as vouchers, has increased from €1,000 to €1,500.

Minimum Wage Increase:

• The National Minimum Wage has risen by 80 cents to €13.50 per hour.
• If you are on minimum wage, you should see this increase reflected in your earnings.

What should You Do?

• Check your January payslip to ensure that your tax credit and USC adjustments have been applied correctly.
• Review your deductions and compare them with your previous payslips to confirm the expected changes.
• Claim your entitlements, including the rental tax credit, if applicable.
• Consult your employer or payroll provider if you notice discrepancies.

Stay Informed:

For more details on Budget 2025 and how it affects your income, you can visit www.citizensinformation.ie

Reach out to us:

At Gallagher Keane, we’re here to help you navigate these changes and ensure you’re making the most of the available tax benefits. If you have any questions about how Budget 2025 affects your personal finances, get in touch with our team today.