The terms ‘USC’ and ‘PRSI’, as they currently exist, could soon be absent from your payslip.
Irish people could witness a change on their payslips in the coming years following the establishment of a government working group to examine the potential amalgamation of the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI).
The formation of the inter-departmental working group comes following a commitment made by Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, in Budget 2018.
It will be chaired by the Department of Finance and includes representatives from the Departments of the Taoiseach, Public Expenditure & Reform and Employment Affairs & Social Protection, and from the Revenue Commissioners.
The objectives of amalgamating USC and PRSI include the simplification of the personal tax system and providing a stable footing for social insurance provision into the future.
The working group will be expected to examine and present options for the amalgamation of PRSI and USC by 30 June 2018, but the actual process of the amalgamation, the Department of Finance says, “will be a complex undertaking and is expected to take place over a number of years”.
“My long-term view of the USC has always been to see its integration into the existing PRSI system,” Paschal Donohoe said.
“The work of this group will contribute to the Government’s objective of making incremental, sustainable but ambitious progress for our citizens – progress on fairer taxation and ultimately on better services”
The USC is a tax on income introduced in January 2011 that applies to Irish people earning a gross income in excess of €13,000 per year.
PRSI is paid by most employed people over the age of 16 in Ireland and depends on an individual’s earnings and the type of work they do.
For more information on both contributions, check out citizensinformation.ie.
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