Written Answers - Universal Social Charge Tuesday, 22 March 2011

Dáil Éireann Debate Vol. 728 No. 3 Page of 276

  44.  Deputy Ciarán Lynch      asked the Minister for Finance      if he will rectify the anomaly whereby a person (details supplied) who has retired on grounds of ill health is required to pay the universal social charge on a pension which is smaller than an illness benefit payment which is not subject to USC; and if he will make a statement on the matter. [5181/11]

Minister for Finance (Deputy Michael Noonan):    The position is that the Universal Social Charge (USC) is applied at the following rates:

2% on the first €10,036 (€193 per week)

4% on the next €5,980 (€193.01 to €308.00 per week) and

7% on the balance.

For persons aged 70 years and over or with an entitlement to a full medical card the USC is applied at the following rates:

2% on the first €10,036 (€193 per week)

4% on the balance.

Furthermore, it should be noted that payments from the Department of Social Protection are exempt from the USC. Also, where an individual’s total income which is chargeable to the USC, is below €4,004 in a year of assessment, the USC would not apply.

I would point out that one of the commitments of the new Programme for Government is to carry out a review of the USC. I can assure the Deputy that this will be completed in time for Budget 2012.

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Last Updated: 08/03/2013 23:43:29

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