What Is the Irish State Pension Increase from 2023 to 2024?

In 2024, the Irish government increased the maximum weekly rates for both the State Pension (Contributory) and State Pension (Non-Contributory) by €12. 

The State Pension (Contributory) rose to €277.30, and the State Pension (Non-Contributory) for individuals aged 66 to 79 increased to €266. 

These maximum personal rates varied based on factors such as social insurance contributions, age, and the specific type of State Pension for which your employees qualified.

Keep reading to find out how much State Pension your employees received in 2024 and what changes apply in 2025.

Further Reading

• Curious if your employees can Claim Irish State Pension and Continue Working? Discover their options today.

• Learn about the Additional Voluntary Contributions (AVC) Pensions in Ireland and what it means for your employees.

How Much Did the State Pension Increase in Ireland from 2023 to 2024?

The Irish government’s Budget 2024 increased the State Pension and other social welfare payments by €12 per week from January 2024. 

Here’s a complete list of the 2024 State Pension rates. 

1. State Pension (Contributory) 

The State Pension (Contributory) is a weekly payment for people aged 66 and above who have paid enough Pay Related Social Insurance (PRSI) contributions.

The Department of Social Protection calculates your employee’s entitlements based on:

• Their yearly average PRSI contributions 

• The date on which they reach the State Pension age (currently 66)

Here’s a breakdown of the State Pension (Contributory) rates for 2024:

A. If your employee reached pension age after 1st September 2012, with: 

• 48 or more yearly average contributions

  • Personal rate: €277.30

  • Increase for adult dependent (under 66): €184.70

  • Increase for adult dependent (over 66): €248.60

• 40 to 47 yearly average contributions

  • Personal rate: €271.90

  • Increase for adult dependent (under 66): €175.80

  • Increase for adult dependent (over 66): €236.10

• 30 to 39 yearly average contributions

  • Personal rate: €249.30

  • Increase for adult dependent (under 66): €167.20

  • Increase for adult dependent (over 66): €223.90

• 20 to 29 yearly average contributions

  • Personal rate: €236.10

  • Increase for adult dependent (under 66): €156.50

  • Increase for adult dependent (over 66): €210.70

• 15 to 19 yearly average contributions

  • Personal rate: €180.70

  • Increase for adult dependent (under 66): €120.40

  • Increase for adult dependent (over 66): €161.40

• 10 to 14 yearly average contributions

  • Personal rate: €110.80

  • Increase for adult dependent (under 66): €73.40

  • Increase for adult dependent (over 66): €99.90

B. If your employee reached pension age before 1st September 2012, with: 

• 48 or more yearly average contributions

  • Personal rate: €277.30

  • Increase for adult dependent (under 66): €184.70

  • Increase for adult dependent (over 66): €248.60

• 20 to 47 yearly average contributions

  • Personal rate: €271.90

  • Increase for adult dependent (under 66): €184.70

  • Increase for adult dependent (over 66): €248.60

• 15 to 19 yearly average contributions

  • Personal rate: €208

  • Increase for adult dependent (under 66): €138.60

  • Increase for adult dependent (above 66): €186.50

• 10 to 14 yearly average contributions

  • Personal rate: €138.70

  • Increase for adult dependent (under 66): €92.50

  • Increase for adult dependent (above 66): €124.20

Changes to the State Pension (Contributory) from January 2025

Starting January 2025, significant updates have been introduced to the State Pension (Contributory) in Ireland. 

Here's a concise overview to help employers understand how it’ll affect your employees:

i. Introduction of the Total Contributions Approach (TCA)

The Total Contributions Approach is a new method for calculating the State Pension (Contributory). It’ll replace the Yearly Average (YA) method. 

TCA assesses the total number of Pay Related Social Insurance (PRSI) contributions made over your employee’s working life, rather than averaging contributions over a set period.

Why the Change?

The TCA aims to provide a fairer system by directly linking pension entitlement to the total contributions made, ensuring that every contribution counts towards the pension.

ii. 2025 Pension Rates

Personal Rates:

• The maximum weekly personal rate for your employees under 80 is €289.30.

• For those aged 80 and over, the maximum weekly personal rate is €299.30.

Qualified Adult Increases:

• For a qualified adult under 66, the weekly increase is now €192.70.

• For a qualified adult aged 66 or over, the increase is €259.40.

iii. Deferring the State Pension

If your employees were born on or after 1 January 1958, they can choose to start claiming their State Pension (Contributory) anytime between the ages of 66 and 70. This is known as deferring the pension. 

Deferring the pension can result in higher weekly payments upon commencement.

For example, based on the 2025 personal rates:

• Claiming at age 66: €289.30 per week.

• Claiming at age 70: €351.80 per week.

2. State Pension (Non-Contributory) 

The State Pension (Non-Contributory) is a means-tested payment made by the Department of Social Protection to your employees aged 66 or above who don’t qualify for the contributory pension.

In 2024, the State Pension (Non-Contributory) were:

• Aged 66 to 79: The maximum weekly rate was €266.

• Aged 80 and above: The maximum weekly rate was €276.

• Qualified Adult under 66: The maximum weekly rate was €175.70.

Changes to the State Pension (Non-Contributory) from January 2025

From January 2025, the Irish government has increased the State Pension (Non-Contributory) rates to enhance support for older citizens. 

i. Increase in Weekly Payment Rates

• Aged 66 to 79: The maximum weekly rate has increased to €278. 

• Aged 80 and over: The maximum weekly rate is €288.

• Qualified Adult under 66: The maximum weekly rate is €183.60.

2 FAQs about Irish State Pensions 

We’ll answer some more questions about Ireland’s state pensions: 

1. What Were Your Employees Entitled to Receive if They Deferred Their Irish State Pension in 2024?

If your employees were born on or after January 1, 1958, and qualified for the maximum rate of the State Pension (Contributory) in 2024, they had the option to defer their pension and claim it anytime between the ages of 66 and 70.

The pension entitlement for each deferred year in 2024 was:

• €290.30 at 67

• €304.80 at 68

• €320.30 at 69

• €337.20 at 70  

This deferral option was introduced to allow individuals to delay receiving their State Pension (Contributory) until the age of 70 in exchange for higher payments.

If your employees deferred their pension, they could continue working past pension age and receive increased weekly entitlements when they eventually claimed.

Note: Those receiving the State Pension (Non-Contributory) were not eligible to defer their pension.

2. Were Irish Citizens Satisfied with the State Pension Increases in 2024?

In 2024, the Irish government increased State Pension payments by €12 per week to help address rising living costs and improve the financial sustainability of retirement for Ireland’s older population and long-term carers.

However, some advocacy groups, including Age Action, expressed dissatisfaction with this increase. They argued that the rise should have been closer to €30 to better match the reduction in spending power caused by the COVID-19 pandemic.

Additionally, as of 2024, Ireland's average pension amounted to approximately €111,000, which remained below 50% of the final salary benchmark recommended by financial experts for a comfortable retirement.

Secure Your Irish Employees’ Retirement with Kota 

While the Irish government increased State Pension rates to address inflation, current payments alone may not provide a comfortable retirement. 

Many retirees relying solely on the State Pension risk financial insecurity in their later years.

Want to give your employees a stronger financial future?

Kota makes workplace pensions simple.

With Kota, you can set up a compliant workplace pension in minutes.

Easily enrol your team in a pension scheme that meets all legal requirements. Your employees can monitor their pension savings, manage their funds, and make informed decisions for their retirement.

Join Kota today and simplify retirement planning for your staff.