Cost of Living
The cost of living adjustment for 2024 amounts to €12.81 per week with students’ stipends increasing pro rata. This adjustment will also be granted in full to pensioners and people receiving social benefits. An additional amount of €2.19 per week will be granted to pensioners.
Pensions
The sustainability and adequacy of pensions is of critical importance to our society. Discussions with social partners are underway in order to continue to debate this issue and in particular to address the possibility of introducing an automatic enrollment mechanism for occupational pension schemes (although with the possibility of a voluntary opt out).
Various favorable adjustments have been made to different types of pensions including an upward adjustment to the maximum pensionable income for persons born before 1962 so as to align them with persons born on or after 1962.
Furthermore, from 2024 onwards, individuals who postpone their entitlement to the retirement pension, will be entitled to a pension increase as follows:
Postponement by: |
|
1 year |
Increase by 1.5% to 6.5% |
2 years |
Increase by 3% to 13.5% |
3 years |
Increase by 4.5% to 21% |
4 years |
Increase by 6% to 29% |
Similar to previous years, the portion of any service pension which is not to be reduced from the social security pension will be increased by a further €200. Also, in certain instances, the commuted part of the service pension will not be taken into consideration for the purposes of the reduction in the social security pension.
Introduction of a widow’s pension with respect to spouses of officers in the disciplined forces. Increase in service pension by 23% and a substantial allowance for individuals who choose to serve the disciplined forces for more than 29 years.
Persons who suffer from mental health issues and who have paid at least 50 social security contributions throughout their lifetime will qualify for an invalidity pension.
A bonus increase of €50 per year will be paid to persons who have reached retirement age but who do not qualify for a pension due to insufficient social security contributions. In 2024, the bonus for those who have paid less than 5 years’ worth of social security contributions will increase to €500 per year (from €450), whilst for persons who have paid more than 5 years but less than 10 years of contributions, will receive an increased bonus of €600 per year (from €550).
Other social measures
By 2027, the minimum wage will be increased between €12 to €18 a week, excluding COLA. For the upcoming year the minimum weekly wage will increase to €213.54 (including COLA).
From next year, families will be receiving a bonus of €500 for their first newborn child, and a bonus of €1,000 for their second child. This bonus is also available to families who adopt a child.
A material increase in children’s allowance of €250 per child per annum.
With effect from 2024, the annual benefit paid to eligible parents who take care of their adult children suffering from a severe disability will increase by €487 to just below €5,000.
The aid for people with disabilities has increased in line with the minimum wage and COLA increase. In addition to this increase, the aid for people with severe disability will increase by €12.81 per week, while the aid for people with disability will increase by €8.54 per week.
The social aid for people undergoing a rehabilitation programme will increase to €50 per week.
Elderly people who have reached the age of 80 years will receive an amount of €450 per year (a €50 increase from prior year) while elderly people between the age of 75 and 79 will continue to receive €300 annually.
Increase in the Carer at Home allowance to €8,000 annually.
The Carer Allowance and Additional Carer Allowance will increase in line with the COLA adjustment.
Increases in the unemployment benefit depending on the period of unemployment.
In-work benefit to increase by €50 for every child under the age of 23 years. Furthermore employees working atypical hours and having a basic annual salary not exceeding €20,000 will continue receiving a grant of €150 per annum.
Additional COLA payable to families with low income when compared to the national median income payable in two installments (December and May) amounting to between €100 and €1,500 per annum.
Parents having children living with them and who continue to study full time (after the compulsory age) will become eligible for a Special Allowance, amounting to €500 per year for three years.
An increase in the maximum amount of subsidy to tenants under the Private Rent Housing Benefit Scheme.