Having a job in Ireland no longer guarantees living above the poverty line, according to new research from Social Justice Ireland (SJI). The study reveals that approximately 6% of employed people, over 145,000 individuals, were at risk of poverty last year. That figure has remained stubbornly consistent over time.

SJI defines “at risk of poverty” as having a household income below 60% of the median income. For a single adult in 2024, this translates to €323.99 per week (€16,906 annually) after taxes and benefits. Families with children or multiple adults face even higher thresholds to stay above the poverty line.

This troubling statistic contrasts sharply with Ireland’s consistently low unemployment rate, one of the lowest in the EU. SJI Research and Policy Analyst Susanne Rogers attributes this disparity to the growing prevalence of low-paid work, particularly within the gig economy, zero-hour contracts, and platform work. “We have well-paid and well-educated people, but there’s a significant problem with low pay,” Rogers stated. “This precarious work is deeply concerning.”

The impact of inflation further exacerbates the situation. Many workers’ incomes have not kept pace with rising living costs, leaving them struggling to meet daily expenses. “Their incomes have not grown at the rate of inflation; they have not kept pace with prices,” Rogers explained.

Budget 2025: Widening the Inequality Gap?
The Irish government announced a substantial €25 billion surplus in Budget 2025, equivalent to 4.4% of the Gross Domestic Product (GDP). The budget included measures to address the cost-of-living crisis, such as immediate one-off payments and permanent income tax and welfare benefits adjustments.

While short-term measures provided some relief for lower-income households, SJI highlighted the inequitable impact of the long-term changes. Permanent tax adjustments disproportionately benefit higher earners, offering sustained income improvements, while lower-income individuals mainly receive one-off payments.

“The long-term changes to the taxation system mean that those who are already doing well will be better off in the long run,” Rogers explained. “The temporary payments were welcomed for those on social welfare, but they will already be spent by February 2025 and beyond. So the increase in costs for households will far outpace the support provided.”

Vulnerable Populations
The prevalence of poverty among vulnerable populations is another alarming finding in that study, with children under 16 representing nearly 30% of those affected. This statistic raises serious concerns about the long-term impacts of sustained poverty on the younger generation.

Among the groups hardest hit, retired individuals make up 10.6% of the impoverished demographic, while those unable to work due to illness or disability account for 11.1%. Notably, older adults over the age of 65 represent 8.8% of the impoverished, translating to approximately 65,000 pensioners grappling with financial instability.

These vulnerable groups are facing compounded difficulties, struggling with limited resources and significant barriers to accessing essential services.

Rogers emphasised the necessity for a comprehensive strategy to combat this issue. “We need to look at pay rates, at making work pay, and at those unable to work,” she states. “Social welfare rates must be adequate, and access to affordable services such as housing, healthcare, education, and transport.”