As part of the government's budget announcement for the new year, several significant payroll changes have been introduced that will affect both employees and employers in 2025. These changes include adjustments to tax brackets, increases in minimum wage, and updates to social security and pension contributions.
These payroll adjustments will be effective as from 1st January 2025 and are being summarised below:
Cost of Living Adjustment
Full Timers: Eur 5.24 per week
Part Timers: Eur 0.13 per hour
Minimum Wage
Aged 18 years and over - € 221.78 per week
Aged 17 years - € 215.00 per week
Aged below 17 years - € 212.16 per week
Public & National Holidays for the year 2024:
Wednesday, 1st January New Year's Day,
Monday, 10th February Feast of St Paul's Shipwreck
Wednesday, 19th March Feast of St Joseph
Monday, 31st March Freedom Day
Friday, 18th April Good Friday
Thursday, 1st May Workers' Day
Saturday, 7th June Sette Giugno
Sunday, 29th June Feast of St Peter and St Paul
Friday, 15th August Feast of the Assumption
Monday, 8th September Victory Day
Sunday, 21st September Independence Day,
Monday, 8th December Immaculate Conception
Saturday, 13th December Republic Day
Thursday, 25th December Christmas Day
Vacation Leave Entitlement
An employee with a 40-hour working week is entitled to 224 hours of paid annual leave; that is, 192hrs basic leave entitlement + 32hrs, in lieu of the 4 Public Holidays that fall on weekends. This is calculated on the basis of a 40-hour working week, and an 8-hour working day. If the average normal hours (excluding overtime) calculated over a period of 17 weeks is below or exceeds 40 hours per week, the vacation leave entitlement in hours should be adjusted accordingly, as provided for in the Organisation of Working Time Regulations. When an employee is in employment for less than 12 months, s/he shall be entitled to a proportionate amount of annual leave.
It is only possible to carry forward up to 50% of the annual leave entitlement to the following year if there is an agreement with the employer. Such vacation leave carried forward from the previous year shall be utilised first and may not be carried forward again.
Unless otherwise agreed to in any applicable collective agreement, the employer may utilise up to the equivalent in hours of twelve working days from the annual leave entitlement for the purposes of any type of shutdown.
Tax Rates
Effective from this year, the tax bands for all computations (single, married and parent rates) have been widened, providing tax reductions for any individual. The new applicable tax bands shall be as follows:
Tax on Part-time Work
Tax rate applicable to income from part time work shall be taxed at the rate of 10%.
Tax on Overtime Individuals who are employed on a full-time basis, working in a non-managerial position and earning a basic weekly wage of not more than €375 (per week) will be taxed at a flat rate of 15% tax for the first €10,000 of overtime earned in a year.
Class One National Insurance Contributions
Class Two National Insurance Contributions
Sickness/ Injury Benefit
Daily rates as from 1st January 2025: