For details of relevant items of Budget 2018, please refer to the information below…
A further reduction in the Universal Social Charge (USC) formed part of the budget 2018 announcement, which was made on 10 October last. Though the cost of this measure amounts to €177 million per annum the reduction for an individual is minimal. The revised rates and some examples are printed below.
USC Rates
2016 2017 2018
First €12,012 1% First €12,012 0.5% First €12,012 0.5%
Next €6,656 3% Next €6,760 2.5% Next €7,360 2%
Next €51,376 5.5% Next €51,272 5% Next €50,672 4.75%
Balance 8% Balance 8% Balance 8%
Incomes of €13,000 or less are exempt. Once income is over this limit the relevant rate of USC is applied on all income.
Medical Card holders and individuals aged 70 and over whose aggregate income does not exceed €60,000 will pay a maximum USC rate of 2% in 2018.
Examples of USC deductions in 2018
Pension: €20k €25k €30k €35k €40k
First €12,012 60.06 60.06 60.06 60.06 60.06
Next €7,360 147.20 147.20 147.20 147.20 147.20
Next €51,272 29.83 267.33 504.83 742.33 979.83
237.09 474.59 712.09 949.59 1,187.09
Reduction in ‘18 53.37 65.87 78.37 90.87 103.37
Other budget measures:
- the standard rate income tax band is increasing by €750, for a single person this is an increase in band width from €33,800 to €34,550 (worth €150 per annum);
- weekly social welfare payments, including the State Pension & the Widow’s, Widower’s, & Surviving Civil Partner’s Pension will increase by €5 per week;
- The monthly threshold for the Drugs Payment Scheme has been reduced by €10 from €144 to €134 from Jan 2018;
- an additional 1,280 teachers (primary & post-primary) will be appointed from next Sept; and
- an additional 1,091 special needs assistants will also be recruited.
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