Increase to main tax credits, minimum wage in Budget 2025
· RTE.ieMinister for Finance Jack Chambers has announced increases to the main tax credits - the personal, employee and earned income credits - by €125, along with raising the national minimum wage to €13.50 as part of Budget 2025.
The standard rate cut off point will increase by €2,000 to €44,000, with proportionate increases for married couples and civil partners.
The Minister also said that the USC rate of 4% will be reduced to 3% - the second consecutive reduction to this rate.
He also said the national minimum wage will increase by €0.80 per hour to €13.50 per hour.
To continue to ensure that these "valued" workers remain outside the higher rates of USC, the Minister said he will be further increasing the entry threshold to the new 3% rate by €1,622 to €27,382, in line with the increase to the national minimum wage.
"This means that a full-time worker on the minimum wage will see an increase in their net take home pay of approximately €1,424 on an annual basis," he said.
"As a result of the cumulative increases to the main tax credits, a single person earning €20,000 or less in 2025 will now be outside of the income tax net," Minister Chambers added.
Read more:
Live updates as ministers announce details of Budget 2025