3rd January 2025
Important Notice re Flat Rate Expenses
In late December, Revenue informed the INTO that teachers who qualify for a Flat Rate Expense allowance may continue to benefit from that allowance in 2025. Revenue advised the union that teachers who are entitled to the allowance will be required to submit a claim each year and that the quickest and easiest way to claim is through Revenue’s online service, myAccount. When claimed, the relevant allowance will be included on an amended Tax Credit Certificate and the benefit will be made through payroll. The Flat Rate Expenses rates for 2025 are as follows:
| Job role and employment status | Amount € |
| School principals | 608 |
| Other teachers | 518 |
| Part-time teacher (on full hours) | 518 |
| Part-time (not on full hours) | 279 |
Please note that teachers who are required to be registered with the Teaching Council in order to be paid through Oireachtas funds may also claim a deduction in respect of the registration fee to the Teaching Council.
Budget 2025
Changes to taxation and social welfare rates which were announced in Budget 2025 came into effect on 1 January. These are summarised below.
Changes to Direct taxation
Income Tax
- The income tax standard rate band increased by €2,000 to €44,000 with proportionate increases for single person child carers, married couples and civil partners. Example: A single person will pay tax at 20% rate up to €44,000 with the balance of earnings at 40%.
Tax Credits
- The Personal Tax Credit, Employee Tax Credit and Earned Income Credit increased from €1,875 to €2,000.
- Home Carer Tax Credit (increased from €1,800 to€1,900), Single Person Child Carer Tax Credit (increased from €1,750 to €1,850) and Incapacitated Child Tax Credit (increased from €3,500 to €3,700).
Universal Social Charge (USC)
- The 4% rate of USC is reduced to 3%. The entry point for this rate increased by €1,622, and will apply to income between €27,382 and €70,044.
Standard rates and Thresholds for USC for 2025
| Threshold for 2025 | Rate |
| First €12,012 | 0.5% |
| Next €15,370 | 2% |
| Next €42,662 | 3% |
| Balance | 8% |
Changes to Social welfare rates for 2025
Below are the benefits typically claimed by teachers.
| Payment | Weekly rate and Maximum weekly rates, € | |
| 2024 | 2025 | |
| Maternity Benefit | 274.00 | 289.00 |
| Adoptive Benefit | 274.00 | 289.00 |
| Paternity Benefit | 274.00 | 289.00 |
| Parent’s Benefit | 274.00 | 289.00 |
| Illness Benefit (Personal Rate) | 232.00 | 244.00 |
| Occupational Injuries Benefit Scheme | 232.00 | 244.00 |
| State Pension (Contributory)
Personal rate – under age 80 |
277.30 | 289.30 |
| Carer’s Benefit | 249.00 | 261.00 |