USC Exemption Threshold increased in Budget 2012

Budget 2012 was kind to your paypacket.  No changes to PRSI or Income Tax to reduce your pay, with only one change to the Universal Social Charge  – and that will reduce the charge for some people.

Universal Social Charge Exemption Level

The level at which you do not have to pay the USC has been increased from €4,004 to €10,036 per annum.

This means you do not have to pay any USC if you earn less than €10,036, but will pay 2% on that of your earnings if you earn more than that.

So if you earn €10,000, instead of a €200 USC charge, you now have a charge of zero.

But if you earn €11,000, you pay the full 2% on the €11,000, which is €220.

This change has been included in our Budget Calculator.