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Money In The Bank

Here is how much the reduced rate of USC will be worth to Enda and Co next year

The government is expecting USC to bring in around €4 billion.

THE CUTS TO the rate of universal social charge brought good news for taxpayers around the country.

Across the board there was a drop in the amount being taken out of pay packets at the end of the month.

The 7% rate dropped to 5.5%, the 3.5% rate dropped to 3% and the 1.5% rate dropped to 1%.

An 8% rate remains in place.

Alongside this the government announced that its long-term plan centres on the abolition of the charge – with Enda Kenny saying that doing so would create 200,000 jobs.

However, before this happens, they can still look forward to it returning a healthy yield next year.

In total the charge is forecasted to bring in €4 billion for the government.

Here is how much workers in each bracket will be putting into the pot:

  • Income of less than €13,000, which individuals pay the 1% rate on, is expected to bring in €171 million.
  • The 3% rate, which is applied on income up to €18,688, will bring in €213 million.
  • The 5.5% rate, which is applied to income from €18,668 up to €70,044, will bring in just over €1.5 billion, and,
  • The 8% rate, which is applied to any PAYE income over €100,000 will bring in €313 million.

There is also an 11% rate that is applied to self-employed people with an income in excess of €100,000.

These figures were given by Finance Minister Michael Noonan in response to a recent parliamentary question from Fianna Fáil’s spokesperson for finance.

Read: Enda says the “savage” USC will be abolished*

Also: Can we really just abolish the USC?

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