The position is that the Universal Social Charge (USC) is applied at the following rates:
2% on the first €10,036 (€193 per week)
4% on the next €5,980 (€193.01 to €308.00 per week) and
7% on the balance.
For persons aged 70 years and over the USC is applied at the following rates:
2% on the first €10,036 (€193 per week)
4% on the balance.
In addition, I should point out that I introduced a Committee Stage amendment during the Finance Bill 2011, which provides for medical card holders to be chargeable to the USC at the following rates:
2% on the first €10,036 (€193 per week)
4% on the balance.
Furthermore, it should be noted that payments from the Department of Social Protection such as the contributory and non-contributory State pension are exempt from the USC. Also, where an individual's total income which is chargeable to the USC, is below €4,004 in a year of assessment, the USC would not apply.
Therefore, based on the question put forward by the Deputy, where a retired public servant is in receipt of a medical card and has a State pension from the Department of Social Protection and a public service pension they will only be chargeable to the USC on their public service pension at a rate of 2 per cent on the first €10,036 per annum and 4 per cent on the balance, assuming it is above €4,004 per annum.
