Overview

• The Government kept the overall €9.4bn envelope but rebalanced it to €8.1bn in public spending and a €1.3bn tax package after trimming €150m from planned tax measures.
• Core social welfare rates, including the State pension, will rise by €10 a week from January 2026, and the national minimum wage increases by 65c to €14.15 an hour with a USC band adjustment to keep full‑time minimum‑wage workers off the top rate.
• VAT for cafés, restaurants, catering and hairdressing drops from 13.5% to 9% on July 1, 2026, while VAT on sales of completed new‑build apartments falls to 9% with immediate effect to stimulate supply.
• Mortgage interest relief is extended for one more year before a planned phase‑out in 2027, and the renters’ tax credit continues at €1,000 for individuals or €2,000 for jointly assessed couples.
• Opposition parties and trade unions criticize the lack of income tax indexation, warning workers face a higher tax burden and signalling tougher pay claims or potential industrial action.