State Pension (Contributory) Ireland: 2025 Guide

The State Pension (Contributory offers financial support and assistance to your Irish workers in retirement. 

It’s a weekly payment made to individuals aged 66 and above, depending on their Pay Related Social Insurance (PRSI) record. 

We’ll discuss the State Pension (Contributory) in detail, highlight 2025 updates, and address any questions you or your employees may have.

What Is the State Pension (Contributory) in Ireland?

The State Pension (Contributory) or SPC is a social insurance payment made to people aged 66 and above based on their social insurance record. It was formerly known as the Old Age (Contributory) Pension,

In 2025, the State Pension (Contributory) is paid at a maximum rate of €289.30. 

To receive this pension, a person must have enough Class A, E, F, G, H, N, or S social insurance contributions (full-rate PRSI contributions). Learn about these PRSI classes. 

State Pension (Contributory) vs. State Pension (Non-Contributory)

Unlike the PRSI-dependent State Pension (Contributory), the Non-Contributory State Pension is a means-tested payment. 

It’s paid to people aged 66 and above who don’t qualify for the contributory pension due to insufficient PRSI contributions.

Check out our detailed Irish State Pension (Non-Contributory) guide for more information.

Who Can Qualify for the State Pension (Contributory) in Ireland?

Let’s look at the eligibility criteria for employed and self-employed people:

A. SPC Eligibility Criteria for Employees 

To ensure your employees meet the eligibility criteria for the State Pension (Contributory) in Ireland, it's essential to understand the specific requirements regarding Pay Related Social Insurance (PRSI) contributions and the methods used to calculate pension rates. Let’s break those down:

1. Starting PRSI Contributions Before Age 56

Your employees must have begun paying PRSI contributions before they turned 56. This first contribution date is known as their ‘entry into insurance.’

If your employees have mixed-rate PRSI contributions (e.g., contributions as both employees and public/civil servants), the following rules apply:

• If their first PRSI payment (entry into insurance) was before they turned 56 and before 6th April 1991, their official entry into insurance will be the date that gives them the highest pension payment.

• If they started paying full-rate PRSI after 6th April 1991, their entry into insurance would be the date of their first full-rate contribution.

2. Minimum Number of PRSI Contributions

The number of full-rate PRSI contributions your employees require depends on the date they reached pension age (66):

• 6th April 2012 and after - 520 contributions (10 years)

• Between 6th April 2002 and 5th April 2012 - 260 contributions (5 years)

• 5th April 2002 and earlier- 156 contributions (3 years)

If your employees reach pension age after 6th April 2012, they can have a maximum of 260 voluntary contributions.

What are voluntary contributions?

Voluntary contributions allow your employees to maintain their social insurance records if they’re not covered by compulsory PRSI. These contributions aren’t mandatory, and your employees can decide whether or not to make them. 

Your employees can pay voluntary contributions if they’re under 66 and not covered by compulsory PRSI in Ireland or any other European Union (EU) country.

3. Total Contributions or Yearly Average

The method used to calculate your employees’ pension is changing.

i. For Pension Age Before 1st September 2012

A yearly average number of contributions is calculated for your employees who reached pension age before 1st September 2012. 

The Yearly Average (YA) method calculates the average number of contributions your employee has made each year, starting from when they first began paying PRSI until the tax year before they reach the pension age. 

This average can be calculated using one of two rules:

• Normal average: A minimum of 10 average contributions per year to receive the minimum amount and 48 to receive the maximum amount.

• Alternative average: An average of 48 contributions per year to receive the maximum pension amount (no reduced pension).

ii. For Pension Age On or After 1st September 2012

If your employee reaches the pension age after 1st September 2012 and drew down their pension before 1 January 2025, the Department of Social Protection (DSP) calculates their maximum pension rate using one of the following methods:

• The Yearly Average method (as described above), or

• The Total Contributions Approach (TCA).

What Is the Total Contributions Approach (TCA)?

The Total Contributions Approach (TCA) calculates the State Pension (Contributory) based on the total number of PRSI contributions your employee has made before turning 66 or the age they defer their pension to.

Your employee needs a minimum of 2080 contributions (or 40 years’ employment) to receive the State Pension (Contributory) at the maximum rate of €289.30 in 2025.

Unlike the Yearly Average method, the TCA does not use averages; it considers the total contributions your employee has accumulated over their working lives.

How the YA to TCA Transition Period (2025–2034) for State Pension (Contributory) Works

From 2025 to 2034, the Department of Social Protection (DSP) will calculate pension rates using: 

• Method 1: TCA, or 

• Method 2: a combination of YA and TCA.

If your employee receives less than the maximum rate using TCA alone, the DSP will calculate a rate using both the Yearly Average method and TCA during the transition period. 

Your employees will be awarded the higher rate of the two methods.

Since we have already discussed what TCA is, let’s see how the second method works. 

How Does the YA and TCA Combination Work? 

Initially, 90% of your employees’ pension will be calculated using the Yearly Average method and 10% using the new TCA method. 

Each year, the proportion considered from the Yearly Average will be reduced by 10%. 

In the second year, it will be 80% from the Yearly Average and 20% from the TCA methods, and so on, until your employee’s pension is fully calculated using the TCA method.

B. SPC Eligibility Criteria for Self-Employed  

As a self-employed person in Ireland, you must pay full-rate PRSI contributions at Class S to qualify for the State Pension (Contributory).

While most of the conditions we've mentioned for employees also apply to you, the entry into insurance rules applies differently for self-employed individuals. 

Ireland’s Department of Social Protection started social insurance PRSI contributions for self-employed people on 6th April 1988.

To assess eligibility for the Contributory State Pension, the DSP will check if you have:

• Contributions Paid On or Before 6th April 1988: For self-employed people who started paying their PRSI contributions before 6th April 1988, the DSP will assess your State Pension eligibility based on your contribution record from that date. They do this if it gives you a better entitlement while calculating your benefits. 

• Contributions Paid After 6th April 1988: If you’re self-employed and began paying Class S PRSI contributions after this date, the DSP determines your entitlement based on the date of your first contribution (the date of entering insurable employment).

Further Reading

• Building a new team in the UK? Equip yourself with the latest information on the UK’s Top Employee Benefits. 

• Find out the eligibility criteria for the New State Pension in the UK (and when your employees can apply).

Irish State Pension (Contributory) Payment Rates 2025

In 2025, the maximum weekly rates of Ireland’s State Pension (Contributory) are as follows:

• Personal Rate:

  • €289.30 per week for individuals under 80 years of age.

  • €299.30 per week for individuals aged 80 and above.

• Increase for a Qualified Adult (IQA):

  • €192.70 per week for adult dependents under 66.

  • €259.40 per week for adult dependents aged 66 and above.

• Increase for a Qualified Child (Child Support Payment):

  • €50.00 per week for children under 12 years of age.

  • €62.00 per week for children aged 12 and above.

A. What Does Increase for a Qualified Adult (IQA) Mean?

An Increase for a Qualified Adult (IQA) is an additional payment available to your employees with a dependent spouse, civil partner, or cohabitant. 

The Department of Social Protection (DSP) evaluates the dependent’s income from sources such as:

• Employment or self-employment.

• Savings and investments.

• Joint accounts (only half of the joint savings are considered).

B. What Does Child Support Payment (CSP) Mean? 

A Child Support Payment may be provided for your employees with dependent children. It was formerly called Increase for a Qualified Child (IQC).

To qualify:

• The child must be under 18 years of age and living with the pensioner.

• If the child is 18 or older, the payment may continue for three months after completing high school or the Leaving Certificate exam — provided the child is not receiving other social welfare payments.

• For children in full-time education, the payment can continue until the child turns 22 years old.

Eligibility may also depend on the income of your employee’s partner:

• If the partner earns over €400 per week, the pensioner may not qualify for IQC.

• If the partner earns between €310 and €400 per week, a reduced rate may apply (only for claims made after 6 July 2012).

Your employees may also be eligible for other benefits and welfare allowances, such as a living-alone increase, a household benefits package, or a fuel allowance.

How Can Employees Apply for Ireland’s State Pension (Contributory)?

If your employees live and work in Ireland, they should apply for the State Pension (Contributory) three months before turning 66.

However, if your employees have worked outside Ireland—in one or more EU states or countries having bilateral relations with Ireland—they must apply six months before reaching the State Pension age (66). 

To apply for the State Pension (Contributory), your employees must:

• Collect their contribution statement from mywelfare.ie using their Personal Public Service number.

• Complete the SPC1 application form. They can Download the State Pension (Contributory) (SPC1) application form online. They can also collect it from their nearest post office, Intreo Centre, or Social Welfare Branch Office.

• Complete the increase for qualified adults (SPCQA1) application form to apply for an adult-dependent increase. Download the application form for Increase for Qualified Adult (SPCQA1).

• Give details about their child dependant on the SPC form or contact their local Intrwo Centre or Social Welfare Branch Office.   

Submitting the SPC Application

All State Pension (Contributory) applications must be submitted via post, as the DSP doesn’t accept online applications. It must be sent to the following address:

Department of Social Protection

College Road

Sligo

F91 T384.

In case of any queries, contact the DSP at:

• Tel: (071) 915 7100 or 0818 200 400

• Email: [email protected]

Can Employees Claim the State Pension (Contributory) if They Have Worked Outside Ireland?

If your employees have worked in Ireland or one or more EU states, they can combine their social insurance contributions made in each EU member state with their Irish contributions.

Ireland has also signed bilateral social security agreements with many countries, which allow Irish employees working in countries other than the EU to join the State Pension scheme.

Learn more about how your employees can Claim the State Pension While Living or Working Abroad. 

9 FAQs About Ireland’s State Pension (Contributory)

Here are some commonly asked questions about the Contributory State Pension:

1. Is the State Pension (Contributory) Taxable?

In Ireland, all pension income, including State, occupational, and private pensions under the PAYE (Pay As You Earn) system, is subject to taxation.

If your employees receive an occupational pension and the State Pension, they may be required to pay income tax on both.

2. Can Long-Term Carers Avail the State Pension (Contributory)?

In January 2024, the government introduced a new 'long-term carers contributions scheme' that gives long-term carers access to the State Pension (Contributory).

If your employees have spent 20 years (1040 weeks) or more caring for an ill or disabled person who requires full-time care, they may receive the contributory pension at an enhanced rate.

They will get long-term carer contributions on their PRSI record for each week they provide full-time care to an ill or disabled person.

To qualify for long-term carer’s contributions, your employees must:

• Have been permanently residing in Ireland for the period they provided care. 

• Be residing with the person to whom they’re offering full-time care (in some cases, they might qualify even if they didn't live with the person but still provided full-time care.) 

• Have been 16 years or above but under the pension age when they started providing care. 

• Not receive any social welfare payments, except for Carer’s allowance, Carer's Benefit, Domiciliary Care Allowance, or Carer's Support Grant.

• Not be employed, self-employed, or enrolled in educational courses for more than 18.5 hours a week. 

3. Can Widows or Surviving Civil Partners Get the Contributory Pension?

Widows and surviving partners can claim the State Pension (Contributory), also known as the Widow’s, Widower’s, or Surviving Civil Partner’s (Contributory) Pension. 

Entitlement depends on the social insurance contributions made by the deceased spouse or civil partner (employee) or, in some cases, the widow or surviving civil partner.

This pension is not means-tested, meaning widows and surviving civil partners can qualify even if they’re employed or have other sources of income.

Your employees may be entitled to this pension if:

• They’re not cohabiting with another person.

• They’re widowed or a surviving civil partner.

• They’re divorced from their spouse but would have been entitled to a pension had they remained married.

• They’re dissolving the civil partnership with their civil partner but would’ve been entitled to receive the pension had they remained in the partnership.

4. Can Employees Postpone Their State Pension (Contributory)?

Irish workers can delay or ‘defer’ their State Pension (Contributory) until they turn 70 in exchange for higher pension entitlements. 

For example, if your employees defer their State Pension at 66 and retire at 67, they’ll receive the State Pension at a maximum weekly rate of €302.90. 

Similarly, if they retire at 68, it’ll increase to €317.90, and so on. 

When your employees delay their pension, they can keep paying contributions to increase their payment amount. 

However, it’s important to note that your employees can't add more contributions beyond the maximum limit of 2080 contributions (40 years).

5. Can Employees Work After Retirement While Receiving the State Pension (Contributory)?

In Ireland, individuals aged 66 and above can work full-time and claim the State Pension (Contributory). 

The new flexible pension age model introduced by the Irish government in January 2024 allows people to continue working past age 66 until 70. It also offers greater flexibility and lets your employees decide when to start claiming their State Pension.

Even if an employee has retired early, they can re-enter the workforce by getting a new job or starting their own business. 

6. How Does Flexible Retirement Affect Irish Employers & What Should They Do?

In 2024, the Irish government began offering flexible retirement options to people working beyond the State Pension age of 66 to boost their income.

This means that you, as an Irish employer, need to be prepared to integrate older workers effectively into your workforce.

Here are a few things you should consider:

• Implement flexible retirement policies: Develop a flexible retirement policy that accommodates and offers multiple options to your employees regarding when and how to access or defer retirement benefits.

• Offer Appropriate Benefit Programs: Adjust your employment benefit programs and company policies to align with the new flexible retirement policies. For example, many pension and death benefit schemes are still based on the retirement age of 65 and don’t reflect current employment conditions.

• Promote fairness, equity, and inclusivity: Fostering a workplace that values fairness and inclusivity can reduce litigation risks. You can also benefit from this by leveraging the expertise of older workers to enhance knowledge-sharing and encourage collaboration among all employees.

• Address Mandatory Retirement Age (MRA) challenges: As many Irish workers want to continue working in old age, enforcing MRAs has become a challenge for employers. The Employment Equality Acts (1998 to 2021) protect Irish workers from age-based discrimination, which means you’ll have a hard time justifying and providing a valid reason to enforce mandatory retirement for your employees.

7. How Can Employees Integrate State Pension (Contributory) Payments into Their Overall Retirement Plan?

The State Pension (Contributory) provides a continuous income stream. 

However, the average Irish pension amount won’t be enough for your employees to sustain a comfortable lifestyle in retirement — considering inflation, increasing life expectancy, and other factors.

Your employees can supplement their State Pension with additional savings or personal pension plans to ensure a more financially secure and worry-free retirement. 

Here are some ways you can help your employees get started:

• Encourage them to diversify their investments: Starting early and spreading their investments across different types, like stocks, bonds, and real estate can help your employees manage risk and potentially increase their returns.

• Set up occupational pensions for your team: Offering occupational pension plans to your employees' helps boost retirement savings. These plans typically include contributions from both the employer and the employee, helping build a more secure financial future.

• Ask employees to stay updated with the latest changes in government policies: Being aware of changes in government policies related to pensions or retirement benefits can help your employees make informed decisions about their finances and adjust plans accordingly.

8. How Does Ireland's State Pension System Compare to Other European Pensions?

A 2024 study by the Mercer CFA Institute ranked Ireland’s pension system 18th out of 48 countries in its Global Pension Index (MCGPI) (a drop from 13th place in 2023). 

The Irish pension system received an overall B grade and ranks ahead of larger European countries like Germany and France.

The index measured the strength of Ireland’s pension system based on three parameters:

• Sustainability: How long can the system deliver

• Adequacy: How much do people get

• Integrity: Trustworthiness of the pension system

As of 2024, Ireland's pension system ranks 24th in sustainability. Its performance has also declined in adequacy (18th, down from 14th in 2023) and integrity (14th, down from 10th in 2023)

By introducing reforms to the pension system, the government aims to enhance the system's long-term sustainability.

9. What Is the State Pension (Transition)?

The State Pension (Transition), also known as the Retirement Pension until 2007, was a payment made to employees from age 65 till they reached the State Pension age of 66.

To receive the State Pension (Transition), an employee had to retire from insurable employment and would automatically get transferred to the State Pension (Contributory) upon reaching the qualifying age of 66. 

The Irish government abolished this pension scheme on 1st January 2014. 

Enhance Your Employees' Retirement with Kota's Digital Pensions

The State Pension (Contributory) is a solid starting point for your team’s retirement, but you can take it a step further as an employer in Ireland. 

Set up an occupational pension scheme with Kota to provide your team with a more secure financial future. 

Kota is a super-easy, digital app that makes employee pensions hassle-free. Setting up your company’s occupational pension scheme is quick, compliant, and straightforward.

Here’s what you’ll love:

• Quick Setup: Get your team onboarded and manage their pensions in just a few clicks.

• Matching Contributions: Set up employer-employee contributions that work for everyone.

• Employee Flexibility: Let your team take control of their contributions, with the freedom to adjust them anytime.

With Kota, you’re not just giving your employees a pension—you’re giving them peace of mind. Plus, it’s all done digitally, saving you time and effort.

What are you waiting for? Take the stress out of pensions and empower your people with Kota’s digital benefits!