State Pension (Contributory) calculation methods and rates

When you submit your State Pension (Contributory) application form, the department will assess your rate of payment using all available calculation methods to ensure you are paid the highest rate possible.

If you access State Pension (Contributory) before the end of 2024, your rate of payment for the State Pension (Contributory) will be calculated using either a Total Contributions Approach (TCA) or a Yearly Average Method, with the calculation method achieving the most beneficial rate being paid to you.

From 2025, the Yearly Average method will begin to be phased out over a 10-year period. By 2034 all rates of payment will be calculated using only the Total Contribution Approach. During this 10-year period, rates will be calculated using the best of a ‘Total Contributions Approach’ (TCA) only, or a combination of a proportion of TCA with a proportion of a Yearly Average to determine the rate payable, with the most beneficial rate being paid to you.

It is not possible for the department to advise you of your State Pension (Contributory) rate before we have received your application form.

The Total Contributions Approach (TCA) has been in place since 30 March 2018 and can be used to assess the rate of State Pension contributory payable to a person with a date of birth on or after 1 September 1946.

Having satisfied the minimum qualification criteria, when deciding on the rate payable, this calculation method considers three elements:

• full-rate social Insurance (PRSI) contributions
• HomeCaring periods awarded for time spent caring for children aged 12 or under at the time the care was provided, or caring for a person who needed an increased level of care (subject to a max of 1040 HomeCaring periods)
• credited contributions (credits) that were awarded for periods when a person is unable to work and claimed a social welfare payment, for example, when in receipt of Illness Benefit or Jobseeker’s Benefit (subject to a max of 520 Credited Contributions)

To receive the maximum rate of State Pension (Contributory) under the TCA calculation method, you must have at least 2080 contributions (equivalent to 40 years). If you will receive the maximum rate, no further calculation is necessary.

If you have less than 2080 contributions, your rate will be a percentage of the maximum rate of pension.

For example:

Mary has 965 reckonable contributions, 403 credited contributions and 205 Home Caring periods, her TCA calculation would be as follows:

965 + 403 + 205 = 1,573

1,573 ÷ 2,080 = 0.7562

0.7562 X 100 % = 75.62 %

Mary would be entitled to 75.62% of the maximum rate payable of State Pension (Contributory).

Based on 2025 rates this equates to €289.30 x 75.62% = €218.80 per week.

Having satisfied the minimum qualification criteria, when deciding on the rate payable using the Yearly Average calculation method, this calculation method considers two elements:

• full-rate social Insurance (PRSI) Contributions
• credited contributions (credits) that were awarded for periods when a person is unable to work and claimed a social welfare payment, for example, when in receipt of Illness Benefit or Jobseeker’s Benefit (there is no cap on the number of credits which can be used in the calculation)

Your Yearly Average is reached by combining social insurance contributions, both paid and credited, and dividing by the number of years between entry into the Social Insurance system and reaching age 66, or, if you were born on or after 1 January 1958, the year you choose to start receiving your State Pension (Contributory).

If you are eligible for the Homemaker's Scheme , for time spent caring for child(ren) aged 12 or under at the time the care was provided , or caring for a person who needed an increased level of care, a full tax year spent as a homemaker can be disregarded in the calculation of the Yearly Average for State Pension (Contributory).

Your Yearly Average will dictate the rate of payment you receive, with the maximum rate of pension payable to someone with a Yearly Average of at least 48, and the minimum payment being paid to someone with a yearly average of at least 10.

For example:

Martin has 1230 reckonable contributions and 39 credited contributions over a period of 50 years, his Yearly Average would be calculated as follows:

1230 + 39 = 1269

1269 ÷ 50 = 25

Martin’s yearly average is between 20 – 29 and based on 2025 rates this would give him a weekly rate of €246.30.

From 2025, the Yearly Average method will begin to be phased out over a 10-year period. By 2034 all rates of payment will be calculated using only the Total Contribution Approach.

During the 10-year transition period, the rate of State Pension (Contributory) payable will be calculated using two methods:

Method 1: The Total Contribution Approach (TCA) will be used to determine a rate of payment. If you will receive the maximum State Pension contributory rate using this calculation, no further calculation is necessary.

If you would receive less than the maximum State Pension (Contributory) rate using the TCA, the Department will consider a rate using Method 2.

Method 2: A rate of payment using a Yearly Average calculation will be determined. A proportion of this Yearly Average rate will then be combined with a proportion of a TCA rate to determine the rate of State Pension Contributory payable to you.

Having compared the outcome of Method 1 and Method 2, the most favourable rate will be awarded to you.

For the purposes of a Method 2 calculation, the proportion of TCA rate to Yearly Average rate used to find out the actual rate of State Pension.

Contributory payable will be determined by the year in which you decide to claim your pension, as outlined below:

The maximum rate of State Pension (Contributory) is €289.30.

This rate applies to all State Pension (Contributory) Applicants born before 1 January 1958, and to those applicants born on or after 1 January 1958, and choose to start receiving their State Pension (Contributory) at age 66.

For reduced rate awards, the Total Contributions Approach will be a pro rata rate depending on the number of contributions you have, where those contributions are less than 2080 contributions, while the Yearly Average method has distinct rate bands,

The department will always award the most favourable rate to you, having considered the various calculations.

In 2025, 90% of the Yearly Average rate will be used in your SPC calculation if it used.

If you were born on or after 1 January 1958, you can choose the date you wish to access any State Pension Contributory entitlement you may have, to a date between the age of 66 and 70.

If you access State Pension (Contributory) after age 67, your rate of payment will be calculated using an actuarially increased rate of payment, depending on your age when you access State Pension Contributory.

The maximum rate of State Pension (Contributory) is the relevant rate associated with having at least 2080 contributions for TCA calculations, or a Yearly Average of 48 or over, as in the tables below for each age bracket.

For reduced rate awards, the Total Contributions Approach will be a pro rata rate depending on the number of contributions you have, where those contributions are less than 2080 contributions, while the Yearly Average method has distinct rate bands.

You may be eligible for an increase to your personal rate of State Pension (Contributory) depending on your circumstances.

You may be eligible to apply for an allowance, in addition to your Personal Rate of State Pension (Contributory), subject to meeting the qualification criteria:

Increase for a Qualified Adult

The rate of Increase for Qualified Adult payable relates to the personal rate of Stage Pension Contributory rate awarded. It will automatically be paid directly to your adult dependant. However, your adult dependant may choose to have it paid with your payment instead.

Child Support Payment

You can get a weekly increase for each qualified child if you get an increase for a qualified adult, or if you are parenting alone. If you do not qualify for an increase for a qualified adult, you may get a half-rate child support payment.

Fuel Allowance

The weekly rate of payment is currently €33 during the Fuel Allowance season, which is usually from late September to April.

People getting certain social welfare payments can choose to get their Fuel Allowance paid in two instalments. The first instalment sum is paid at the start of the Fuel Allowance season and the second is paid in January.

Telephone Support Allowance

The Telephone Support Allowance is paid automatically to people who are in receipt of both the Living Alone Increase and Fuel Allowance.

It is paid at a single rate of €2.50 a week.

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