USC Calculation for 2016 - How Much Difference Will it Make ?

The reductions to USC that were announced in Budget 2016 were heralded as a massive change prior to the Budget . We saw headlines in one paper saying that it would mean an extra €1000 in workers take home pay – but that was rubbish.

The changes to the USC in 2016 will result in more take-home pay for plenty of people – but nowhere near a €1000 year for most people. Someone on €70,000 a year will see a drop in USC of €902 a year – but the drop is much smaller for lower earners.

Link to Details of New USC Calculation for 2016 Here

Here is a simple table showing how the USC changes will affect a single earner.

Gross
Wage        USC 2015           USC 2016     Diff/Yr          Diff/Wkly
15000          285                       210                 75                     1.45
20000          545                       393               152                    2.92
25000          895                       668               227                    4.36
30000         1245                      943               302                    5.81
35000         1595                      1218              377                     7.25
50000         2645                     2043           602                   11.58
70000         4045                     3143    902 17.35

So someone on the median wage of around €30,000 a year will see a decrease of 5.81 a week in USC which is €302 a year or €25 a month

Full calculation rules for USC 2016

14 thoughts on “USC Calculation for 2016 – How Much Difference Will it Make ?”

i work 35 hours per week and i get a disibility allowance of 53 per week how much will i gain

Money Guide on October 13, 2015 at 20:11 said:

teresa – it depends on how much you earn. As you can see from the sample figures – it is going to be in the region of just €3 to €7 a week in USC changes.

i pay a lower rate of USC because i have a medical card- will i see any difference in my pay, i earn 37k per year.

Money Guide on October 14, 2015 at 16:16 said:

The new percentage rates apply so you will see a small increase in take home pay too.

i just started my pension(15000 per year)will i benifit from usc reduction,and when does it come into effect.

Money Guide on October 15, 2015 at 10:15 said:

The changes start in January 2016. Everyone will see a small drop in USC

How was the USC calculated for the 30k and for the 35k wage?

Money Guide on January 19, 2016 at 15:06 said:

The calculations are correct – see here for method https://www.moneyguideireland.com/usc-changes-in-budget-2016.html

Sorry I am a bit confused with the new USC changes. I earn 15.800 PA
(303.44 PW) Do I pay 1% for the first 12.000 and 3% for the balance?? I would be grateful for your input.

Money Guide on January 21, 2016 at 11:18 said:

For people with income of €13000 or more the rates will be :
As shown here – https://www.moneyguideireland.com/usc-changes-in-budget-2016.html

1% on all income from 0 up to €12012

3% on earnings between €12012 and €18,668

5.5% on any income between €18,668 and €70,044

8% on any income over €70,044
- Mandy on January 21, 2016 at 11:37 said:
  
  Thank you for your reply.
- Money Guide on January 21, 2016 at 12:47 said:
  
  You’re Welcome . Your USC should be €234 a year (€4.50 a week)

Hi earn, 53500 PY, how much should my USC be?

Money Guide on January 26, 2016 at 09:41 said:

USC on €53500 in 2016 should be €2236 a year – down from €2890 in 2015

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