Changes to USC made in Budget 2016
The USC (Universal Social Charge) has been cut in Budget 2016 –
These are the new rates of USC that will come into effect on January 1st 2016
Zero – if total income is under €13000 a year
For people with income of €13000 or more the rates will be :
1% on all income from 0 up to €12012
3% on earnings between €12012 and €18,668
5.5% on any income between €18,668 and €70,044
8% on any income over €70,044
The mismatch between the entry threshold and the first band is strange and is not an error by the Dept of Finance. It makes the calculation slightly more complicated.
You can see what effect the new USC rules will have on your pay packet here.
USC 2016 and Net Pay
People aged 70 or more with income under €60000 will still have a maximum rate of of 3% USC (Even on Income over €18,668 ) .
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 3% USC
Medical Card holders with income of €60,000 or more will pay the same rates of USC as non medical card holders.