Medical Card Holders USC Rates

Calendar January 28, 2011 | Posted by Money Guide

There was a small U-Turn by the government on USC and Medical Cards.  The last minute changes to the rules on the Universal Social Charge for Medical Card holders – were not as much as many people were hoping for.
The USC rates as introduced in the 2011 Budget were the same for Medical Card holders under 70 as for everyone else under 70 : -

4% on earnings between  €10,037 and  €16,016

7% on any income over  €16,016

Previously Medical Card holders were exempt from the Income and Health levies that this USC replaced.
Medical Card holders are now to be treated the same as over 70′s as far as the USC is concerned.
Those with a Medical Card will pay a maximum USC rate of  4% .

Examples of Medical Card Holders Income and USC

Weekly  Income      USC under Old Rules            USC Under New Rules

€308                               €8.46                                         €8.46
€350                                €11.40                                      €10.14
€460                                €19.10                                      €14.54
€650                                €32.40                                      €22.14

A person  does not need to hold a medical card for the full year to qualify for the 4% maximum USC. It is due as long as the individual holds a full medical card for some period during the year. The holder needs to supply  sufficient evidence to their employer/pension provider that they hold a full medical card to enable them to apply the correct 4% maximum rate from the next pay period.

In cases where an employee, in possession of a full medical card, had USC deducted at the rate of 7% from 1 January 2011 they will have overpaid the USC and will be due a refund. Employers have been told by Revenue  to make  such refunds immediately rather than wait until the end of the year.

Strangely – anyone living in Northern Ireland – and working in the Republic can also get a cap on the USC of 4% – because in the North a medical card is issued to everyone. It is not a means tested thing  – it just confirms that you can use the NHS.
Irish Revenue state that a Northern Irish medical card is to be treated the same as an Irish one for USC purposes.

Category Categories: Finance Bill, Medical Cards, Universal Social Charge, USC

13 Comments

  1. Jamie says:
    February 4, 2011 at 03:36

    I am in the same boat as you Janet. Payroll not a clue at my works. I got my Income Levy refunds really easily and quickly, but waiting to hear about my Health Levy Refund. I would love to know when the new 4% kicks in, as already tried to explain to my payroll and they had no idea about A1 or A2 so will have to chase them up. Dates please???

    • Money Saving Expert says:
      February 9, 2011 at 17:48

      The original article has been updated with the latest information. The 4% cap is now in place and employers should be giving USC refunds to medical card holders who paid 7% in Jan 2011.

  2. Anne says:
    February 13, 2011 at 10:01

    I’m full medical card holder. on gross weekly last year paye 51.71, praise 30.54, income levy nil. This year PAYE 81.91, PRSI 35.70, Income Levy nil, USC 58.27
    Does this seem right. We are down €90

  3. darren says:
    February 21, 2011 at 21:01

    i have a full medical card,my gross is 26022pa i am stiil paying the 7% high rate i asked my wages clerk and she said she has no clue about it i also asked human resources and again they have no idea they told me to go to citizens advice should i have to do this or should they know wat to do already
    Also i paid the income levy last year even though i had a medical card can i get a rebate for this?

  4. TERRY says:
    February 25, 2011 at 16:17

    hi. ihad a full medical card in 2010. shud i have paid the health levy in this year. and if not how do i reclaim it

    terry