The USC – Universal Social Charge was first introduced in January 2011 – and workers were liable for USC as soon as they earned €77 a week. (4004 a year)
The 2012 Budget introduced some changes so that people earning a gross income under €10036 a year are now exempt from USC.
It sounds good – but it means that the take home pay of someone on €10000 a year will increase by just €3.85 a week . But – it’s an increase which is better than a decrease !
Here is a breakdown showing the amounts of USC deductions you can expect from your pay in 2012.
Monthly Gross Pay
Medical card holders – still pay just 4% on earnings over €10,037 a year.
Another change to USC was also introduced as part of Budget 2012 – and that is that the USC will be assessed on a cumulative basis instead of a weekly basis. This will mean there will be less chance of people underpaying USC when they have 2 low paid jobs but are earning above the threshold.