Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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231. To ask the Minister for Employment Affairs and Social Protection the cost of benchmarking the State Pension at 34% of average earnings; and if she will make a statement on the matter. [42203/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Based on only the most recent earnings figures released by the CSO, the provisional Q2 value, average earnings (excluding irregular earnings and overtime) is €875.36, and 34% of that figure is €297.62.

To meet this figure in 2025, when the 2025 State Pension (Contributory) rate will be €289.30, an increase of €8.30 on the current rate of State Pension (Contributory) would be required (rounded to the nearest 10 cent).

The full-year cost of an increase of €8.30 in the State Pension (Contributory) only is €241.79 million.

To meet this figure in 2025, when the 2025 State Pension (Non Contributory) rate will be €278, an increase of €19.60 on the current rate of State Pension (Non Contributory) would be required (rounded to the nearest 10 cent).

The full-year cost of a €19.60 increase in only the State pension non contributory scheme is €102.19 million.

The above costings include a proportionate increase for qualified adults and for those on reduced rates of payment, where relevant.

It should be noted that these costings are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients for 2025. The approach outlined here is not the same as the smoothed earnings approached used by my Department as an input to the Budget process, which takes both inflation and earnings into account. Nor do the costings provided cover potential costings for increases in non-pension weekly payments.