Universal Social Charge Payments

Dáil Éireann Debate, Tuesday - 12 February 2013

Tuesday, 12 February 2013

Ceisteanna (196)

Olivia Mitchell

Ceist:

196. Deputy Olivia Mitchell asked the Minister for Finance if, in view of changes to the rate of universal social charge for the over-70s in budget 2013, he will provide an update to the example he previously cited in Dáil Éireann (details supplied) which outlined the difference between the gross and net take-home pay of a single public service pensioner over the age of 70 whose gross income is €125,000 after paying the PSPR, universal social charge and all other relevant taxes; and if he will make a statement on the matter. [7173/13]

Freagraí scríofa

Minister for Finance (Deputy Michael Noonan)

The indicative calculations of the amounts of Public Service Pension Reduction (PSPR), Income Tax, and Universal Social Charge (USC) in 2012 and 2013 which apply to a single public service pensioner aged 70 years of age with gross income of €125,000 are set out as follows:

-	Public Service Pensions	-
2012 – Single Public Service Pensioner aged 70	-	-
Gross Income	-	€125,000
Public Service Pension Reduction (PSPR)	-	-
First €12,000 @ 0%	= €0	-
Next €12,000 @ 6%	= €720	-
Next €36,000 @ 9%	= €3,240	-
Next €40,000 @ 12%	= €4,800	-
Balance @ 20%	= €5,000	(€13,760)
Universal Social Charge	-	-
€10,036 @ 2%	= €200.72	-
€101,204 @ 4%	= €4,048.16	(€4,249)
Income Tax	-	-
€32,800 @ 20%	= €6,560	-
€78,440 @ 41%	= €32,160	-
-	€38,720	-
Less Tax Credits	-	-
Personal Tax Credit	(€1,650)	-
PAYE Tax Credit	(€1,650)	-
Age Tax Credit	(€245)	(€35,175)
Total Deduction	-	(€53,184)
Net Income	-	€71,816
2013 – Single Public Service Pensioner aged 70	-	-
Gross Income	-	€125,000
Public Service Pension Reduction (PSPR)	-	-
First €12,000 @ 0%	= €0	-
Next €12,000 @ 6%	= €720	-
Next €36,000 @ 9%	= €3,240	-
Next €40,000 @ 12%	= €4,800	-
Balance @ 20%	= €5,000	(€13,760)
Universal Social Charge	-	-
€10,036 @ 2%	= €200.72	-
€5,980 @ 4%	= €239.20	-
€95,224 @ 7%	= €6,665.68	(€7,106)
Income Tax	-	-
€32,800 @ 20%	= €6,560	-
€78,440 @ 41%	= €32,160	-
-	€38,720	-
Less Tax Credits	-	-
Personal Tax Credit	(€1,650)	-
PAYE Tax Credit	(€1,650)	-
Age Tax Credit	(€245)	(€35,175)
Total Deduction	-	(€56,041)
Net Income	-	€68,959