Unite, a trade union, has highlighted that the annual salary of €27,000, set by the Department in 2021, equates to an hourly rate of €13.31 for a 39-hour work week. This is now less than the national minimum wage, leading to calls for employers to increase the pay of these workers to comply with the new wage standards.

In response, the Department has announced that from 17 January 2025, the minimum annual remuneration for healthcare assistants, home carers, and care workers will be increased to €30,000, with a corresponding hourly rate of €14.79. This adjustment aims to ensure that all workers in these roles are paid fairly and in line with the national minimum wage.

However, this increase will only apply to new contracts and renewals, meaning that many migrant care workers on existing contracts will not benefit from the new minimum annual remuneration. Unite has criticised this decision, arguing that it leaves a significant number of workers still earning below the minimum wage.

The Department of Enterprise, Trade and Employment has emphasised its commitment to ensuring that future increases in minimum annual remuneration are implemented sustainably for both employers and permit holders. Ongoing engagement with the Department of Health, Department of Justice, and representatives of long-term care employers and workers will continue throughout 2025 to address these issues.

The issue of low pay among migrant care workers is part of a broader problem affecting many sectors in Ireland. A report by the Migrant Rights Centre Ireland (MRCI) found that almost half of migrant workers in low-pay sectors earn less than the minimum wage. The report also revealed that many migrant workers face additional challenges such as unpaid wages, working without contracts, and discrimination.

The MRCI has called for stronger penalties for employers who exploit their staff and for the introduction of a living wage of €11.50 per hour. The organisation also advocates for a regularisation scheme for undocumented workers and programmes to combat discrimination in recruitment and the labour market.

The plight of migrant care workers has drawn attention to the need for better working conditions and fair pay across all sectors. As the cost of living continues to rise, it is crucial that all workers, regardless of their background, are paid a fair wage that reflects their contribution to society.

The Department of Enterprise, Trade and Employment has stated that it will continue to monitor the situation and make necessary adjustments to ensure that all workers are treated fairly.

Cost-of-Living Supports

One of the key components of Budget 2025 is a substantial cost-of-living package worth approximately €1.5 billion. This package is designed to provide relief to households struggling with rising living costs. It includes lump-sum payments to welfare recipients and new energy credits, although these will be less generous than the previous year’s payments. Despite the ongoing need for such supports, some economic think tanks argue that the current economic conditions may not justify these measures.

Tax Reductions

A significant highlight of the budget is the introduction of a major income tax and Universal Social Charge (USC) reduction package, amounting to €1.4 billion. The government aims to ensure that no individual earning the average wage will be subject to the higher rate of income tax. This will be achieved through adjustments to the tax bands and an increase in the tax credit. These changes are expected to provide substantial relief to middle-income earners and stimulate economic activity.

Social Welfare Enhancements

Social welfare recipients are set to benefit from a range of enhancements. The budget includes a €12 increase in weekly payments for pensioners, carers, and people with disabilities. Additionally, there will be two social welfare bonus payments before the end of the year, providing further financial support to vulnerable groups. The government is also focusing on addressing child poverty, with measures aimed at supporting children in need. However, a two-tier child benefit system has been ruled out, ensuring that all children receive equal support.

Energy Credits

Households can look forward to another round of energy credits, although these will be less than the three payments of €150 provided last year. The government is considering phasing out these subsidies as the worst of the energy crisis has passed. This move reflects a shift towards more sustainable and long-term solutions for energy affordability.

Inheritance Tax and Rent Tax Credit

In response to rising property prices, the inheritance tax threshold is expected to increase from €335,000 to €400,000. This adjustment aims to alleviate the financial burden on families inheriting property. Additionally, the rent tax credit, which was increased to €750 last year, is likely to rise to €1,000. This measure is intended to provide relief to renters facing high housing costs.

Minimum Wage

The Low Wage Commission has recommended an increase in the minimum wage to €13.70 per hour. While the government is expected to follow this recommendation, it is not yet guaranteed. If implemented, this increase will benefit low-income workers and help address income inequality.

Public Spending and Infrastructure

Budget 2025 will include a spending package of €6.9 billion, focusing on public services and infrastructure. This includes pre-committed spending from previous budgets and new policies to be announced. The government aims to invest in critical areas such as healthcare, education, and transportation, ensuring that public services are adequately funded and improved.