Decreased USC in 2017
The USC (Universal Social Charge) was cut in Budget 2017– and one of the band limits has been raised slightly to keep minimum wage workers out of that band. (18668 increased to 18772)
These are the new rates of USC that will come into effect on January 1st 2017
Zero – if total income is under €13000 a year
For people with income of €13000 or more the rates will be :
0.5% on all income from 0 up to €12012 (cut from 1%)
2.5% on earnings between €12012 and €18,772 (cut from 3%)
5% on any income between €18,772 and €70,044 (cut from 5.5%)
8% on any income over €70,044
The changes will mean that people earning between 18,772 and 70,044 will see an decrease of 0.5% in their USC deductions. This will mean just an extra €2 a week take home pay for someone on €25k a year, or an extra €5 a week for someone earning €55k a year.
Someone on the minimum wage will only see an increase in take home pay of €5.42 a week when the min wage goes up to €9.25. Some more examples here
People aged 70 or more with income under €60,000 will still pay a maximum rate of of 2.5% USC (Even on Income over €18,772 ) .
Over 70′s with income over €60,000 will still pay the same rates of USC as under 70’s .
Medical card holders with income under €60,000 also have a top rate of 2.5% USC. Medical Card holders with income of €60,000 or more will pay the same rates of USC as non medical card holders.