Legislation changes for the 2025 tax year

There are legislation changes that apply in the new tax year, from 1 January 2025.
This article explains what the changes are and what you need to do in Sage Payroll.

Minimum wage increase

The national minimum wage for people aged 20 and over increases by €0.80 to €13.50

 NOTE: If you have employees aged 20 or over on the minimum hourly rate, edit their pay on the first pay run of the tax year. 

Budget changes

• The 4% rate of USC drops to 3%
• The 2% USC upper threshold rises by €1,622 to €27,382
• The income tax standard rate cut-off rises by €2,000 to €44,000
• The personal by €125 to €2,000.00

There is nothing you need to do regarding these budget changes.

These changes take effect when you retrieve RPNs for your employees in the new tax year.

Read our article Retrieving RPNs.

Statutory Sick Pay

In line with the Sick Leave Bill 2022, statutory sick leave entitlement is due to increase from five to seven days, effective from 1 January 2025.

 NOTE: The Department of Social Protection is yet to confirm this change

You can enter SSP in Sage Payroll from your first pay run on or after 1 January 2025.

Read our article Statutory Sick Pay.

Also read our articles:

• Retrieve RPNs
• Statutory Sick Pay
• Pensions, PRSAs and RACs