The Universal Social Charge (USC) was introduced in the 2010 budget to replace the Income Levy and Health Contribution. USC is applied to anyone earning over €4,004 per annum.
The standard rates are:
- 2% on the first €10,036
- 4% on the next €5,980
- 7% on the balance.
Self-employed individuals have a further rate of 10% applied to income over €100,000.
For those with full medical cards or are over 70, the top rate of USC paid is reduced by 3%.
The total USC payable is calculated based on gross income, including notional pay, before pension contributions.