What is USC (Universal Social Charge)?
The Universal Social Charge is an Irish tax on gross income (with limited exemptions). Rates are banded: 0.5% on the first €12,012, 2% to €25,760, 3% to €70,044, and 8% above. Self-employed people earning over €100,000 pay an extra 3% surcharge.
Current Rate (Calendar year)
0.5% / 2% / 3% / 8% (plus 3% self-employed surcharge over €100k)
Example
An employee earning €60,000 pays approx. €100 (0.5% on €12,012) + €275 (2% on €13,748) + €1,028 (3% on €34,284) = €1,403 USC.
Related terms
Pay As You Earn is the system Irish employers use to deduct income tax, PRSI and USC from employee wages and pay them to Revenue in real time. Since 2019, Ireland has operated under PAYE Modernisation, requiring employers to report payroll on or before each pay date.
Pay Related Social Insurance funds Ireland's Social Insurance Fund. Most employees pay Class A1 PRSI at 4.1% (rising to higher rates over time), and employers pay 11.05% on weekly pay above €441, or 8.9% below. Self-employed people typically pay Class S at 4.1%.
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