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Keeping track of key financial dates and updates is essential for effective financial planning. Whether you’re a business owner, employee or parent, staying informed helps you make the most of tax reliefs, avoid penalties, and manage your finances wisely.
Additionally, Budget 2025 has introduced several changes that can impact your income, expenses, and savings.
In this blog, we’ll walk you through the key financial dates and updates for 2025, helping you stay ahead and take control of your financial goals. From minimum wage increases to rent tax credits and the Help-to-Buy Scheme extension, there’s plenty to plan for this year.
January
Minimum Wage Increase
Starting January 1, 2025, Ireland’s minimum wage has increased by €0.80 to €13.50 per hour, up from €12.70. This is about a 6.3% rise, aimed at helping workers keep up with higher living costs and inflation.
What it means
For minimum-wage workers, the new rate means an extra €32 a week for a full-time 40-hour schedule, adding up to €1,664 more in gross pay over a year. Part-time workers will also see a boost, which can be especially helpful for students and those managing other commitments.
Who it’s important for:
Minimum-Wage Earners
- Workers in sectors like retail, hospitality, cleaning, and childcare, where minimum-wage jobs are more common, will directly benefit from this change.
- It helps bridge the gap between earnings and the rising cost of living.
Part-Time and Casual Workers
- Individuals working fewer hours, such as students and caregivers, will see a boost in their hourly income, even with flexible or reduced schedules.
Small and Medium-Sized Enterprises (SMEs)
- Employers in industries with lower profit margins, such as hospitality or retail, may need to reassess financial strategies to manage the increase.
Energy Credit Payment
As part of Budget 2025, the Irish government has introduced a €250 energy credit to assist households with electricity costs during the winter months. This credit is divided into two instalments of €125 each.
Payment Schedule:
- First Installment: Applied between November 1 and December 31, 2024.
- Second Installment: Applied between January 1 and February 28, 2025.
What It Means:
These credits are automatically applied to domestic electricity accounts, providing financial relief during periods of higher energy consumption.
Who It’s Important For:
All domestic electricity customers are eligible, including those with Pay As You Go meters. This initiative is particularly beneficial for households facing increased energy usage during the colder months, helping to alleviate financial pressure from heating and electricity needs.
Read more on the Citizens Information website.
“Baby Boost” Payment
From 2025, parents of newborns will receive a €420 “baby boost” payment in addition to the standard child benefit. This one-time payment is part of the Irish government’s measures to support families with the immediate costs of having a new baby.
What It Means
This one-time payment is part of the Irish government’s measures to support families with the immediate costs of having a new baby. Added to the monthly child benefit of €140, it provides families with extra breathing room during the early months while easing the financial pressures of starting or growing a family.
Who It’s Important For
New Parents: Whether it’s your first child or a new addition to a growing family, this payment is a helpful boost to manage immediate baby-related expenses.
Low-to-Middle Income Families: Families with limited budgets will benefit most from the extra payment, helping them better manage the financial demands of a newborn.
Expecting Parents: Those preparing for a baby in 2025 can factor this payment into their financial planning, making it easier to budget for initial costs.
Maximise Child Allowance
The government child allowance is a great way to cover immediate baby expenses like nappies, clothes, and other essentials, but have you ever considered using it for long-term financial growth? You’ve probably never thought about investing your child’s benefits, yet it could be a game-changer.
For example, saving your child allowance (€140 per month) in a bank account for 18 years could accumulate €30,240. However, by investing it in a fund, the power of compound growth could grow your savings to nearly €66,713.
This approach could guarantee your child’s future education, provide a deposit payment for their first home, or support other life goals.
Read more about how to maximise your child’s allowance in our detailed article and start planning their bright future today.
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Income Tax Package
From January 2025, several income tax and tax credit changes will benefit workers and families across Ireland.
Key Changes
Standard Rate Cut-Off Point Increase:
- The income threshold for paying the lower 20% tax rate will rise from €42,000 to €44,000.
- Married couples and civil partners will also see proportionate increases.
Increases to Main Tax Credits:
Personal, Employee, and Earned Income Credits increase by €125, bringing each to €2,000.
Increases to Family and Caring Tax Credits:
- Home Carer Tax Credit: Up by €150 to €1,950.
- Single-Person Child Carer Credit: Up by €150 to €1,900.
- Incapacitated Child Tax Credit: Up by €300 to €3,800.
- Dependent Relative Tax Credit: Up by €60 to €305.
- Blind Person’s Tax Credit: Up by €300 to €1,950.
Universal Social Charge (USC) Changes
- The 4% USC rate is reduced to 3%, marking the second consecutive reduction.
- The entry threshold for the 3% rate increases by €1,622, meaning workers earning up to €27,382 will pay lower USC rates.
- This adjustment ensures minimum wage earners (€13.50/hour) avoid higher USC rates.
What It Means
For Workers:
Workers will pay less tax on income, particularly those earning between €42,000 and €44,000, who will now stay within the lower 20% tax band.
The increased tax credits mean more take-home pay, providing financial relief amidst rising living costs.
For Families and Carers:
Families and individuals with caring responsibilities will see greater financial support through increased tax credits, helping with child care, dependent relatives, or children with special needs.
For Minimum Wage Earners:
Workers on the minimum wage (€13.50/hour) remain exempt from higher USC rates, ensuring their income is maximised.
Who It’s Important For
Employees and Self-Employed Individuals:
The higher tax cut-off point and increased credits directly benefit all workers, particularly middle-income earners.
Families:
Single parents, caregivers, and families with children, dependents, or disabilities gain added support through enhanced tax credits.
Minimum Wage Earners:
The USC changes ensure low-income workers, including those on minimum wage, avoid being pushed into higher USC rates.
April
Expansion of the Hot School Meals Programme
From April 2025, the Hot School Meals Programme will cover all primary schools, with a ‘School Meals Holiday Hunger’ pilot project starting in summer 2025 to provide meals during school holidays.
What It Means
The program ensures children receive a daily hot, nutritious meal, easing financial pressure on families.
Who It’s Important For
- Children: Enhances health and learning through consistent meals.
- Families: Reduces food costs and stress.
- Communities: Promotes equality and well-being for all students.
September
Universal Companion Pass for Seniors
The Universal Companion Pass for seniors will launch in September 2025. This pass will significantly enhance public transport access for older adults. All individuals aged 70 and over will qualify for it, enabling them to bring a companion free of charge on public transport.
What It Means
The Universal Companion Pass provides more than free travel. It enhances mobility, keeps seniors connected to loved ones and services, promotes social inclusion by reducing loneliness, and ensures easier access to transportation by removing financial barriers.
Who It’s Important For
Seniors (70+): Helps older adults maintain independence and access resources.
Caregivers and Families: Encourages outings and offers peace of mind.
Public Transport Providers: Boosts ridership and supports sustainability.
Auto-Enrolment Retirement Savings Scheme
Auto-enrolment is an important step to help people save for retirement. It makes saving easy by automatically enrolling employees who don’t already have a pension. Both employers and the government add to the employees’ contributions, creating a bigger retirement fund over time. This ensures that more people have financial security in their later years, reducing the risk of struggling with money after they stop working.
Who It’s Important For
- Employees Without Pension Coverage: The scheme is primarily designed for workers who currently don’t have access to workplace pension plans, particularly those aged 23 to 60 years earning over €20,000 annually.
- Younger Workers: Starting early gives younger employees the benefit of compounding growth on their pension savings over a longer period.
- Employers: Employers are required to contribute to their employees’ pension funds.
- Government: Auto-Enrolment reduces future dependency on the State Pension system, promoting financial sustainability.
Free Schoolbooks for Senior Cycle Students
From September 2025, the free schoolbooks scheme in Ireland will expand to include all Transition Year and Senior Cycle students attending schools within the free education scheme.
What It Means
Expanding the free schoolbooks scheme helps families by saving them hundreds of euros each year on Senior Cycle schoolbooks. It also makes sure all students, no matter their family’s income, have the learning materials they need, creating a fairer education system.
Who It’s Important For
- Students: Directly benefits Senior Cycle and Transition Year students by providing equal access to learning materials, ensuring they are well-equipped for their studies.
- Families: Alleviates financial stress, particularly for households with multiple school-age children.
- Schools: Simplifies book distribution processes and ensures consistency in the resources used across classes.
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October
Income Tax Deadline for Self-Employed Individuals
This is one of the most crucial financial deadlines of the year. Self-employed individuals must file their income tax return and pay any balance of income tax owed for the previous year by the end of October. If you file and pay taxes through the Revenue Online Service (ROS), the deadline is typically mid-November.
This is also an opportunity to make pension contributions, which can significantly reduce tax liabilities by providing valuable tax relief.
What It Means
Meeting the income tax deadline avoids penalties and interest while allowing pension contributions to reduce taxable income, supporting long-term financial planning.
Who It’s Important For
Self-employed individuals, business owners, and those with income not subject to Pay As You Earn (PAYE) can lower their tax bills and invest in their future by staying compliant and making timely pension contributions.
Learn more by reading our article on reducing income tax bills via pension contributions.
November
Income Tax Deadline for Self-Employed Individuals – ROS
Revenue Online Service users have until this date to file and pay income taxes. If you file and pay taxes through the Revenue Online Service (ROS), the deadline is typically mid-November.
Other Key Changes in 2025
CAT Threshold Increase
The thresholds for Capital Acquisitions Tax (CAT) in Ireland have been increased, offering greater allowances for tax-free gifts and inheritances. From 2 October 2024, the Group A threshold—primarily for transfers between parents and children—rises to €400,000, up from €335,000.
The Group B threshold, covering transfers between siblings, nieces, nephews, and grandparents, increases to €40,000 from €32,500.
Meanwhile, the Group C threshold, applicable to all other relationships, grows to €20,000 from €16,250.
These adjustments mean individuals can now receive higher-value gifts or inheritances without incurring CAT, reflecting efforts to ease the tax burden on beneficiaries and account for rising asset values.
Free Public Transport for Children
Public transport will become free for all children under 9, expanding the current benefit that only applies to children under 5. This extension will help families save on transportation costs for school runs, outings, and everyday travel.
Tobacco and Vape Tax
The government continues its efforts to reduce smoking and vaping. Cigarette prices were already increased by €1 per pack in October 2024. From mid-2025, a new tax of €0.50 per ml will be added to e-liquids for e-cigarettes, making vaping more expensive.
These changes aim to help people smoke and vape less while encouraging healthier habits.
It’s also important to know that life insurance policies are more expensive for smokers. Quitting smoking can significantly lower the cost of life insurance, helping you save money in the long run. Read more in our article to learn how.
Rent Tax Credit
The rent tax credit has been increased in Budget 2025 to provide greater financial relief for renters. For 2024 and 2025, the credit is now €1,000 per individual and €2,000 for jointly assessed couples, representing 20% of annual rent payments, up to these limits.
This is a boost from the previous caps of €750 and €1,500 for 2024, which were retrospectively increased. The adjustment aims to support renters facing rising housing costs, offering a more substantial reduction in their tax bills.
Extension of Help-to-Buy Scheme
The Help-to-Buy Scheme (HTB) has been extended until the end of 2029, providing continued support for first-time homebuyers in Ireland. Originally set to expire on 31 December 2025, this extension ensures that eligible buyers can benefit from tax relief to help with the deposit for a new home or self-build property.
The scheme offers significant financial assistance, making it easier for individuals and couples to step onto the property ladder and achieve homeownership.
Learn more by reading all the changes on the Citizens Information website.
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How to Stay on Top of These Changes
Set Alerts: Use digital calendars to set reminders for key dates.
Review Your Budget: Account for savings and new costs, such as tax credits or tobacco taxes.
Seek Expert Advice: Our Financial advisors can help you optimise tax planning and navigate changes.
By understanding what these dates mean and who they impact, you can take charge of your finances in 2025.
Get your Financial Planning Quote
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Whether you’re saving for a home, building an emergency fund, or planning for retirement, a clear financial strategy can help you stay on track. Get your tailored quote today to take the first step toward achieving your financial goals for the year ahead.
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
