THE AMOUNT OF our collective pay cheques that disappear into the Universal Social Charge has increased by 25 per cent in the past two years.
An estimate given by Finance Minister Michael Noonan in response to a query from independent TD Patrick Nulty shows that the Revenue Commissioners expect to rake in €4 billion in the USC from Irish workers by the end of this year.
In 2011, the total take on the USC was €3.1 billion. Last year, it had increased to €3.8 billion.
The figure for this year is based on the government’s economic update, released in April, and which made forecasts about the state of our coffers for the rest of 2013.
The USC came into effect on 1 January, 2011 and hits incomes over €10,036 a year. While gross incomes over this are the source for most of the USC take, it can also apply to occupational pensions lump sums. The rate can be anywhere between 2 per cent and 7 per cent depending on the income band.
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