
Workers, parents, pensioners and welfare recipients are among thousands of people who are set to benefit from new measures to be rolled out this month. Upcoming cost-of-living increases and bigger benefits announced in the Budget 2025 splurge are among the plans that could bolster your finances.
Here are 10 of the top extra payments including predicted pay rises, social welfare hikes and tax cuts that may make your bank account healthier this month and beyond.
A €420 baby boost:
A triple child benefit payment of €420 was announced in the Budget for every baby born after midnight from January 1.
This is made up of a newborn baby grant worth €280, paid on top of the first month of child benefit of €140 per child paid in the month after a birth.
At the time, it was indicated that the triple payment would be paid to every baby born from just after midnight on January 1, 2025.
But outgoing Social Protection Minister Heather Humpheys extended the date to include all babies born on or after December 1, 2024.
As a mother, I do not want to see any woman or baby miss out
"I have been contacted by many women over the last 24 hours whose babies are due to arrive in December," she told the Dáil.
She said they were very worried that their babies would arrive too late for the double child benefit payment that was paid at the start of December and too early for the newborn grant in January.
"As a mother, I do not want to see any woman or baby miss out," she said.
"So my message to those families is – don’t worry, the Christmas babies will be looked after."
A department spokesperson said there is no need to apply separately for the newborn baby grant, as the payment will be made automatically if a parent is eligible for child benefit.
In cases where children are born in December, the first child benefit payment of €140 will issue on January 7. The newborn grant of €280 will be paid on February 11.
In cases where children are born in January, the first child benefit payment of €140 will be paid on February 4. The newborn grant of €280 will be paid on February 11.
From March, payment of the grant will be made with the first child benefit payment. The first total payment will be €420.
A €12 hike in the state pension and welfare payments
There will be a €12 a week hike in most social welfare payments from January.
The maximum state pension (contributory) will rise to €289.30 a week, or just over €15,000 a year.
It will be paid at a rate of €299.30 a week for those aged 80 and over. The non-contributory pension rises to €278 for over those aged 66 but under 80 and rises to €288 for those who are 80 and over.
The carer’s allowance rises to €260 for the under-66s and €298 for those aged 66 and over. Disability allowance, the blind pension, the widow’s and widower’s pension, one parent family payment, and jobseeker’s allowance rise to €244.
"Those participating in CE programmes, a rural social scheme, and Tús will also get a €12 a week increase", and there is a €24 increase per week for those on the work placement experience programme.
A €15 increase in maternity benefit, paternity benefit, adoptive benefit and parent's benefit
This price increase will come into force this month. Maternity, paternity, adoptive and parents’ benefit currently stand at €274 a week. The payments will rise to €289 a week.
An €125 electricity bill credit for all households
It was announced in Budget 2025 that all domestic electricity customers will get €250 off their electricity bills over the winter period. This is being paid in two instalments.
The first payment was due between November 1 and December 31.
The second payment is due between January 1 and February 28.
Tax cuts
The income point at which the upper tax rate is paid will rise to €44,000 from €42,000, while the USC rate will fall from 4pc to 3pc.
Workers will also benefit from a €125 increase in the main tax credits.
80c an hour pay increase for 165,000 workers
The €12.70 an hour national minimum wage is set to rise by 80 cents to €13.50 an hour from January 1 for those aged 20 and above.
For those aged 19, the statutory minimum wage will rise to €12.15, and to €10.80 for 18-year-olds. For workers under 18, the new hourly rate is €9.45.
The wage hike could have a knock-on effect on pay expectations, pushing up all salaries as the gap narrows with higher paid staff. The wage hike could have a knock-on effect on pay expectations, pushing up all salaries as the gap narrows with higher paid staff.
Pay rises and vouchers up to €1,500
Union officials for private sector workers will be seeking pay rises in the 4pc to 7pc range next year.
Public servants are due to get a 2pc pay rise on March 1, another 1pc on August 1, and a local bargaining increase of 1pc on September 1, 2025 under their current pay deal.
Meanwhile, employers can give their workers more vouchers or non-cash benefits without paying tax.
From January 1, there will be an increase in the “Small Benefit Exemption” scheme. According to the Revenue Commissioners, this means the number of annual vouchers or benefits is increasing from two to five, and the exemption limit will rise from €1,000 to €1,500.
New pensions for almost 800,000 workers
A new national retirement savings scheme is due to start on September 30.
It aims to help workers without occupational pensions to save for their retirement.
Workers will automatically be enrolled in the scheme but they can opt out. It will mean they do not have to depend solely on the state pension when they retire.
All workers between 23 and 60 who earn over €20,000 and are not in a private pension scheme will be automatically enrolled.
Employees, employers and the State will contribute, and workers can opt out after six months.
Bigger dole payments
If you lose your job in the New Year, you may get higher dole payments.
A new pay-related benefit scheme that is due to start on March 31 aims to provide a better financial safety net for the unemployed. Jobseeker payment rates will be linked to a worker's previous wages.
The Department of Social Protection said it “will ensure people with a strong work history receive a higher level of payment if they lose their job”.
Weekly rates of payment for those who have paid at least five years of PRSI contributions will be set at 60pc of their previous earnings, up to a maximum of €450 for the first three months. After that, the rate will be set at 55pc of their earnings to a maximum of €375 for the following three months.
Another three months will be paid at the rate of 50pc, up to a maximum €300 payment.
Cheaper public transport
A free travel scheme companion pass will be available for people over 70 from September. This means those with a free travel pass will be able to bring a companion with them free of charge. Previously, this was only available to them if they passed an assessment.
In addition, free public transport will be extended to to children who are between five and eight.
Source: Ann-Marie Walsh, Irish Independent, 2nd January 2025.