- Cost of living allowance – An overall income increase of €1.75 weekly which is also extended to all pensioners together with a further €3.25 per week to be enjoyed by all pensioners over and above the COLA increase thus totaling €5.00.
- Elderly, aged 62 and over, who would have reached their state pension age but who did not qualify for the minimum pension will continue to receive deficiency contribution bonus – DCB, depending upon number of national insurance contributions paid. This group is divided into two groups.
Those who have paid between 50 and 259 Social Security Contributions (50 social security contributions to less than 5 years)
| Year | Bonus in Euro |
| 2020 | 200 |
| 2021 | 250 |
Those who have paid more than 260 Social Security Contributions but still ineligible for a pension. (5 years social security contributions paid to less than 10 years)
| Year | Bonus in Euro |
| 2020 | 300 |
| 2021 | 350 |
- Service Pension – The total amount omitted for assessment purposes for pensioners who also receive a service pension had been increased by a further €200 to read €2,866.
- Pensioner couples paying income tax on their married computation to be exempt from tax.
- The calculation of a contributions average when a pension claim is assessed was calculated on the number of contributions / credits from age 18/19 up to the date of retirement. (Age 18 for those persons born on or after 5/4/58 – Age 19 for those persons born before 5/4/58). With effect from January 2021, people born prior 1962 will have all the contributions paid under age considered only if a rejection in contribution test is resulted from age 18 onwards.
- Private Pension Plans: A tax credit of 25%, for 2021, will apply to a maximum contribution of €3,000 instead of €2,000, in that, the maximum tax credit for 2021 will be of €750 per person (€3000 * 25%).
To have a look at measures for year 2020, kindly click here.
The Budget 2021 Documents
Pre-Budget 2021 Documents