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Here's what's changed with the Universal Social Charge in the Budget

The much-hated USC has been cut.

Irish budget 2016 Brian Lawless / PA Wire Brian Lawless / PA Wire / PA Wire

WE’VE KNOWN FOR quite some time that the Universal Social Charge (USC) is to be cut.

Today we found out by just how much.

Finance Minister Michael Noonan announced today a range of changes to the much-disliked tax, including:

  • A 1.5% reduction in the 7% rate which will now drop to 5.5%.
  • The 3.5% and 1.5% rates will be reduced by 0.5%

The threshold at which people will have to pay different rates of USC will also change.

  • The threshold to the new 3% rate will be widened to over €18,688, an increase of over €1,000
  • The threshold to the new 5.5% rate will also rise from €17,756 to €18,668 up to €70,044.

An individual who is earning €32,000 per year will pay the Universal Social Charge at a rate of 1% on the first €13,000 (which comes to €130), 3% on the next €5,668 (which comes to €170.04) and 5.5% on the balance of €13,312 (which comes to €732.16). In total this person will pay €1,032.20 per year. This is a reduction of €352.

The entry point for those who have to pay the USC will rise from €12,012 to €13,000.

You do not pay the Universal Social Charge if your total income for a year does not exceed €13,000. An individual who is earning €13,100 per year will pay 1% on that €13,000 and 3% of the remaining €100.

The exemption from the top rate of USC is for medical card holders and those over 70 earning less than €60,000.

Below are the USC rates and bands BEFORE today’s Budget announcement, as a point of reference.

usc Citizens Information Citizens Information

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52 Comments
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    Mute Paul Roche
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    Oct 13th 2015, 2:55 PM

    USC should be abolished

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    Mute Joe Arthur
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    Oct 13th 2015, 2:56 PM

    Good plan.

    They should wipe out PAYE as well. That one’s a right pain in the arse.

    233
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    Mute Joe Conlon
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    Oct 13th 2015, 3:00 PM

    Cut the Christmas bonus for dole lifetimers only!! If you can work, and have been on the dole all your life then you should not be rewarded, that money should go to education or the disabled or somewhere where it’s badly needed, it sickens me!

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    Mute littleone
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    Oct 13th 2015, 3:20 PM

    NAMA to supply 20.000 houses by 2020 with 90% in Dublin. So once again this government neglects the rest of Ireland. Houses are needed everywhere.

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    Mute Enda Bourke
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    Oct 13th 2015, 3:28 PM

    Anyone that is working Christmas Day should not be taxed . I know there are people that could do with the bonus at Christmas but there are people that never worked a day in there life’s and they get rewarded for that. It’s all wrong . I would rather be taxed known that my money is going to a carer than to a sponger

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    Mute Darren Savage
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    Oct 13th 2015, 3:35 PM

    You should undertake a Microeconomics course on Supply & Demand. There’s a lot more demand for an apartment or house in Dublin city centre/Dublin South than in towns like Ballina, Clonmel or Ennis. This is not “neglect”. If anything, this supply will reduce the rental/purchase prices in areas where it’s needed most.

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    Mute little jim
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    Oct 13th 2015, 4:04 PM

    Ah lad, building up a boom in one city is not going to help. Investment outside of Dublin is essential right now, industry and housing has to spread across the nation. Macroeconomic 101.

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    Mute Sternn
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    Oct 13th 2015, 6:16 PM

    Don’t worry, it’s temporary. HAH!

    17
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    Mute Deborah Behan
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    Oct 13th 2015, 8:58 PM

    20,000 houses is FA. This gov reacts rather than plans. This budget has nothing for me.

    11
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    Mute Paul Roche
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    Oct 13th 2015, 9:05 PM

    I’ve always said that…

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    Mute Eddie Danger
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    Oct 13th 2015, 9:50 PM

    Scrapped and refunded, absolute thievery

    12
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    Mute John Moylan
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    Oct 13th 2015, 10:10 PM

    We don’t need any more ‘advice’ from economists – they fkud us already. Fine – pour money into Dublin housing – but only with Dublin taxpayer’s money. Why should Ballina, Clonmel or Ennis taxpayer’s contribute so ?

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    Mute Sean Duffy
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    Oct 13th 2015, 10:41 PM

    Dead right laziness should never be promoted or rewarded. Christmas bonus my arse!

    13
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    Mute Kipper O Keeffe
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    Oct 13th 2015, 11:37 PM

    a bonus for not working a fecking joke

    12
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    Mute The Destroyer
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    Dec 31st 2015, 6:18 PM

    @John does that mean that only Ballina etc tax money is to fund those places?? I am not from the capital but living here for many many years as its only place I can get a lot of work.. The capital needs a lot more accomodation. Its a joke paying up to 1200 for a small one bed apartment. More supply will lower the rental costs, but we need a lot more than 20000.

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    Mute Donal Laurence Heffernan
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    Nov 2nd 2016, 5:29 PM

    @Sean Duffy: If I was to stick €200 up your arse, would you bend over and accept it? With a Merry Christmas ribbon on it too.

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    Mute Klark Quent
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    Oct 13th 2015, 2:55 PM

    Still not voting them back in……They are not giving us anything new……they are returning a fraction of what was taken to pay the banking bond holders.

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    Mute Deborah Behan
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    Oct 13th 2015, 9:00 PM

    Will never vote for them again.

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    Mute IrishGravyTrain
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    Oct 13th 2015, 2:54 PM

    Take half a million workers out of USC by raising it from 12k to 13k. Says it all really.

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    Mute Joe Arthur
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    Oct 13th 2015, 2:58 PM

    “The government’s overall aim is to take half a million workers out of the USC tax net altogether.”

    They haven’t taken half a million out of USC, it’s just their aim.

    Also, full time minimum wage is around €18k.

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    Mute For Connolly
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    Oct 13th 2015, 3:00 PM

    Exactly. That’s over a quarter of the workforce. A ‘recovery’ built on minimum wage and zero hour contracts.

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    Mute Thomas Clarke
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    Oct 13th 2015, 3:01 PM

    This is all fantastic news.

    23
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    Mute For Connolly
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    Oct 13th 2015, 3:04 PM

    that was @ IGT

    46
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    Mute Thomas Clarke
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    Oct 13th 2015, 3:11 PM

    how much are you up FC?

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    Mute Jax Maxwel
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    Oct 13th 2015, 3:12 PM

    Jaysus Joe are you Enda in disguise?

    46
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    Mute Scarce 9 Jutro
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    Oct 13th 2015, 7:52 PM

    Thomas Clarke, jamming is up a free Christmas bonus.

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    Mute Scarce 9 Jutro
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    Oct 13th 2015, 7:52 PM

    Thomas Clarke, jamming is up a free Christmas bonus.

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    Mute Gary Mullen
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    Oct 13th 2015, 2:53 PM

    WooHoo – I’m gonna be rich!

    135
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    Mute Alien8
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    Oct 13th 2015, 4:24 PM

    Whatever you do don’t run your figures through the online tax calculators, when you include water and property charges, it says I’m up €1 a week. I’m just glad I don’t waste that on lottery tickets.

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    Mute John Hayes
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    Oct 13th 2015, 7:49 PM

    I’ll try not let it change me.

    20
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    Mute Rashers Tierney
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    Oct 13th 2015, 3:03 PM

    Thanks be to Christ it’s over. How many threads on the same shite can one web site have??

    116
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    Mute Setrakian
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    Oct 13th 2015, 3:23 PM

    @ Thomas Clarke – you’re easily pleased. You’re comment should read ‘ thanks Fine Gael – I am deluded’! Feel free to amend accordingly. Nobody else is ‘delighted’ & for good reason too. Crumbs / pittance springs to mind.

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    Mute Free comment ratings
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    Oct 13th 2015, 2:57 PM

    ☆ I don’t see an article?

    42
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    Mute Kieran Hurley
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    Oct 13th 2015, 3:38 PM

    I’m going to blow the lot on a new jacket, thanks ENDA !

    34
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    Mute Sean Wong
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    Oct 13th 2015, 2:55 PM

    Better than nothing.

    32
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    Mute Jamsey
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    Oct 13th 2015, 2:59 PM

    The continuation of what was to be a temporary tax is “better than nothing”?… Yeah……

    134
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    Mute Thomas Clarke
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    Oct 13th 2015, 3:15 PM

    more money in my pocket thanks to FG. I am delighted :)

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    Mute Mc F Kevin
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    Oct 13th 2015, 3:38 PM

    More pocket money for you

    36
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    Mute James Mark Donnelly
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    Oct 13th 2015, 3:45 PM

    If a thief, lets call him ‘Frank Grimes’, took your wallet which contained €100, then bullied you to pay him to live in your own house, and also bullied you to give him money for the water you use, but then a week later gave you back €20 from the wallet he stole, are you €20 up thanks to Frank, or are you €80 down and the rest?

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    Mute Thomas Clarke
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    Oct 13th 2015, 3:02 PM

    Thanks FG :)

    21
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    Mute Ashling Fenton
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    Oct 13th 2015, 3:21 PM

    is a rise to minimum wage upcoming or can we forget it at this stage?

    14
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    Mute Danny Nash
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    Oct 13th 2015, 3:56 PM

    Any increase to the 33,800 tax band?

    14
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    Mute Declan Doyle
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    Oct 13th 2015, 7:42 PM

    The even more hated and pure c untish Pension Levy remains fully in force.

    13
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    Mute Scarce 9 Jutro
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    Oct 13th 2015, 7:53 PM

    Pension is being scrapped at end of his year.

    4
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    Mute Declan Doyle
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    Oct 13th 2015, 7:58 PM

    The Public Sector C untish pension levy

    12
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    Mute Reg
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    Oct 13th 2015, 8:26 PM

    I though the PS sector pension levy was going to be reduced as part of the pay restoration measures starting in January?

    5
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    Mute Declan Doyle
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    Oct 13th 2015, 8:30 PM

    Marginally. The fact that such workers get done separately, up to €5000 PA, is a disgrace. This tax is the most vile and cruel in modern times.

    6
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    Mute Reg
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    Oct 13th 2015, 8:46 PM

    My wife is PS and has to do on call work as part of her contract. She’s loses about 60% of it when you add the pension levy. It does need to be reduced.

    12
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    Mute Debbie Delaney
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    Oct 13th 2015, 4:46 PM

    It was said that the entry level would be increased to 13000 however when they spoke of the actual rates the 1% was applied from 12012 to 18668. Am I missing something? Was it a typo and the 12012 should have been 13000? Anyone else confused?

    10
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    Mute Kipper O Keeffe
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    Oct 13th 2015, 11:31 PM

    Feck sake people work all year and won’t be getting a bonus ! people sitting on there arse get a bonus no incentive to work

    8
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    Mute Michael Sands
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    Oct 13th 2015, 4:59 PM

    Just in time for the BEAR market…

    4
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    Mute Jarrett moon
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    Oct 13th 2015, 2:53 PM

    Whoo hoo

    1
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    Mute Jane Yazicioglu
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    Oct 13th 2015, 10:17 PM

    Why are pensioners who are earning less than 13000 paying universal charge on their electricity bills

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