Dáil Éireann Debate, Tuesday - 23 October 2012
170. Deputy Pearse Doherty asked the Minister for Finance the point at which a person starts paying the universal social charge in annual income terms; and the cost to the State of taking all those earning the minimum wage out of the USC band. [45998/12]
View answerThe current minimum wage is €8.65 per hour. On an annualised basis, this is equivalent to €17,542 assuming a 39 hour working week. I am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer, estimated by reference to 2013 incomes, of increasing the existing exemption threshold of €10,036 per annum for the Universal Social Charge (USC) to €17,542 per annum would be €131 million. This figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and may be revised.
