Pensioners get €12.50 weekly increase

Pensions will increase by €12.50 per week from January, more than double the increase they received last year.

The increase comes in the wake of runaway inflation that has punished elderly and vulnerable families the most.

More than 100,000 pensioners will benefit from this increase, which comes at an additional cost to public coffers of €65 million. Pensioners will be receiving an additional €650 next year.

This will be the eighth consecutive increase in pensions over and above the normal cost of living adjustment.

Vulnerable pensioners could also benefit from the additional COLA mechanism introduced in the budget that will target the poor.

Non-taxable threshold increased

The non-taxable threshold for pensions will increase to €14,968, while those using a married tax rate will continue to benefit from a tax exemption on any other income up to €3,600 per year.

Widows pensions

Widows pensions will be adjusted upward once again in line with an electoral pledge to bring these pensions equivalent to that of their deceased spouses by the end of the legislature.

Around 9,000 widows will experience an increase of up to €3.54 per week on average. This measure will cost €1.6 million.