Universal Social Charge (USC)
Important notice for employers: As and from 1 January 2012, the deduction of Universal Social Charge will change from the present week 1 basis to a cumulative basis - similar to the manner in which PAYE is deducted.
Universal Social Charge Changes announced in the Budget 2012 (PDF, 22KB)
Universal Social Charge FAQs (PDF, 686KB)
The Universal Social Charge is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions.
The rates of Universal Social Charge are:
| 2011 | 2012 |
|---|---|
| 2% - on the first €10,036 | 2% - on the first €10,036 |
| 4% - on the next €5,980 | 4% - on the next €5,980 |
| 7% - on the balance | 7% - on the balance |
However, these standard rates are modified in certain circumstances. In the case of individuals aged 70 or over, and individuals who hold full medical cards:
| 2011 | 2012 |
|---|---|
| 2% - on the first €10,036 | 2% - on the first €10,036 |
| The 4% rate applies to all income over €10,036 | The 4% rate applies to all income over €10,036 |
There is a surcharge of 3% on individuals who have income from self-employment that exceeds €100,000 in a year, regardless of age. Thus, where such individuals are under 70 years and do not hold a full medical card, a rate of 10% applies to such income and where such individuals are aged over 70 years or hold a full medical card, a rate of 7% applies.
| 2011 | 2012 |
|---|---|
| Where an individual's total income for a year does not exceed €4,004 | Where an individual's total income for a year does not exceed €10,036 |
| All Dept of Social Protection payments | All Dept of Social Protection payments |
| Income already subjected to DIRT | Income already subjected to DIRT |
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Universal Social Charge FAQs (PDF, 686KB)
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2012 Cumulative Basis USC - Payroll Calculation Examples (PDF, 247KB)
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Universal Social Charge (USC) - 2011 Employer Factsheet (PDF, 51KB)
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Universal Social Charge (USC) - 2012 Employer Factsheet (PDF, 37KB)
