Top

Changes to Payroll 2025

PSC Accountants & AdvisorsFeatured Changes to Payroll 2025

Changes to Payroll 2025

Payroll Bulletin – October 2024

 

  1. Changes to Payroll 2025

 

  • The following changes all need to be borne in mind when preparing payrolls in 2025:

 

The minimum wage for employees will increase from 1st January 2025:

I. Over 19’s: to €13.50 per hour

II. Age 19: to €12.15 per hour

III. Age 18: to €10.80 per hour

IV. Under 18: to €9.45 per hour.

 

  • Statutory Sick Pay: The Annual entitlement in 2025 is due to increase from 5 days to 7 days. The rate is 70% of a normal day’s pay (up to maximum of €110 per day). A medical cert is needed.
  • Public Holiday Entitlements: All full time and most part time employees are entitled to public holiday benefit, even if they do not normally work on the day the public holiday falls on. The day of the week the public holiday falls on and the employee’s normal work hours for that day, will determine the allowance they are entitled to. Some will be entitled to a paid day off, while others will be entitled to 1/5th of their average weekly pay even if they do not normally work on the day the public holiday falls on. We can assist in calculating this entitlement, if required.
  • Annual Holidays: All employees are entitled to annual leave. The statutory entitlement for a full-time employee is 4 working weeks per year if they are employed for the full year.

 

Part time employees are entitled to annual leave pro-rata to full time employees, but if they are not employed for the full year, calculations are based on 8% of hours worked.

 

  1. Other topical developments

We wish to remind you that from January 2024 any direct payments to staff made in relation to Travel & Subsistence / Working from Home allowance / Small Benefit Exemption must be notified via an Enhanced Reporting Requirements (ERR) Revenue submission before the payment is made.

We are receiving a number of queries regarding the small benefit exemptions.  Small benefits such as Christmas Vouchers must be notified via an ERR Revenue submission before the payment is made to the employees. For 2024, 2 benefits per calendar year, up to a cumulative maximum value of €1000 per year, are allowed as a tax free payment.

 

From 1 January 2025 only, the Small Benefit Exemption is increasing where it will be €1500 per year with number of vouchers increasing to 5.

 

The Government Auto Enrolment Scheme is due to commence in September 2025.