Cash boost: the 10 new social protection increases and tax reductions that will boost your bank account from January

Here are 10 of the major additional payments, including planned wage increases, welfare increases and tax cuts that could make your bank account healthier this month and beyond.

A baby boost of €420

From January 1, a triple payment of family allowances of €420 was announced in the budget for each baby born after midnight.

This is a newborn allowance worth €280, paid in addition to the first month of family allowance of €140 per child paid in the month following a birth.

At the time, it was stated that the triple payment would be paid to any baby born shortly 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 don’t want to see any woman or baby missing

“I have been contacted by many women in 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 payment of child benefit paid in early December and too early for the newborn allowance in January.

“As a mother, I don’t want to see any woman or baby miss out,” she said.

“So my message to these families is: don’t worry, the Christmas babies will be taken care of.”

A department spokesperson said there was no need to apply for the Newborn Allowance separately, as payment will be made automatically if a parent is entitled to Child Benefit.

In the event that the children are born in December, the first payment of family allowance of €140 will be paid on January 7. The newborn allowance of €280 will be paid on February 11.

In the event that the children are born in January, the first payment of family allowance of €140 will be paid on February 4. The newborn allowance of €280 will be paid on February 11.

From March, payment of the allowance will be made with the first payment of family allowances. The first total payment will be €420.

An increase of 12 euros in state pensions and social benefits

Most social benefits will be increased by 12 euros per week from January.

The maximum state pension (contributory) will be €289.30 per week, or just over €15,000 per year.

It will be paid at a rate of €299.30 per week for people aged 80 and over. The non-contributory pension amounts to €278 for those over 66 but under 80 and €288 for those aged 80 and over.

The childcare allowance amounts to €260 for those under 66 and €298 for those aged 66 and over. Disability allowance, blind person’s pension, widow’s and widow’s pension, single parent family allowance and jobseeker’s allowance amount to €244.

People participating in CE programs, a rural social program and Tús will also benefit from an increase of €12 per week.

Those taking part in CE programmes, a rural social program and Tús will also benefit from an increase of €12 per week, and there is an increase of €24 per week for those taking part in the internship experience programme.

An increase of €15 in maternity, paternity, adoption and parental benefits

This price increase will take effect this month. Maternity, paternity, adoption and parental benefits currently amount to €274 per week. Payments will amount to €289 per week.

A credit on electricity bill of €125 for all households

It was announced in Budget 2025 that all domestic electricity customers will benefit from a €250 reduction on their electricity bills over the winter period. This is paid in two installments.

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 level at which the highest tax rate is paid will increase from €42,000 to €44,000, while the USC rate will fall from 4% to 3%.

Workers will also benefit from an increase of €125 in the main tax credits.

Hourly wage increase of 80 cents for 165,000 workers

The national minimum wage of 12.70 euros per hour is set to increase by 80 cents to 13.50 euros per hour from January 1 for those aged 20 and over.

For 19 year olds, the legal minimum wage will increase to 12.15 euros and 10.80 euros for 18 year olds. For workers under 18, the new hourly rate is €9.45.

Rising salaries could have a knock-on effect on salary expectations, pushing all salaries up as the gap narrows with higher-paid staff.

Rising salaries could have a knock-on effect on salary expectations, pushing all salaries up as the gap narrows with higher-paid staff.

Salary increases and vouchers up to €1,500

Union leaders for private sector workers will seek wage increases of between 4% and 7% next year.

Civil servants are expected to receive a 2% salary increase on March 1, another 1% on August 1, and a 1% local salary increase on September 1, 2025 under their current salary agreement.

Meanwhile, employers can offer their workers more vouchers or in-kind benefits without paying taxes.

From January 1, the “exemption from small benefits” system will be increased. According to the tax authorities, this means that the number of vouchers or annual benefits will increase from two to five and the exemption limit will increase from €1,000 to €1,500.

Today’s news in 90 seconds – January 2

New pensions for nearly 800,000 workers

A new national retirement savings plan is due to start on September 30.

Its aim is to help workers without a workplace pension to save for their retirement.

Workers will be automatically enrolled in the program but can opt out. This means they will no longer have to rely solely on the state pension when they retire.

All workers aged 23 to 60 who earn more than €20,000 and who do not participate in a private pension plan will be automatically affiliated.

Employees, employers and the state will contribute, and workers can withdraw after six months.

Greater compensation

If you lose your job in the new year, you could receive higher compensation.

A new earnings-related benefits scheme, due to start on March 31, aims to provide a better financial safety net for the unemployed. Jobseekers’ compensation rates will be linked to the worker’s previous salary.

The Ministry of Social Protection said it “will ensure that people with a strong work history receive a higher level of remuneration if they lose their job.”

Weekly payment rates for those who have paid PRSI contributions for at least five years will be set at 60% of their previous income, up to a maximum of €450 for the first three months.

After that, the rate will be set at 55% of their earnings with a maximum of €375 for the following three months.

An additional three months will be paid at the rate of 50pc, up to a maximum of €300.

Cheaper public transport

A free companion pass will be available for people over 70 from September. This means that those who have a free transport ticket will be able to take 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 children aged five to eight.