Unfair Universal Social Charge has greater impact on low to middle income workers

Tuesday 6 December 2011

Government fails to sufficiently tackle unfair nature of USC in Budget

Mandate Trade Union has highlighted their concerns about the unfair nature of the Universal Social Charge which they feel targets lower to middle income workers who can afford it least and believes the Government failed to sufficiently tackle this problem in the Budget.

Mandate General Secretary John Douglas stated: “This unfair charge has targeted lower to middle income workers who are least able to afford to pay and who are suffering most from other austerity measures imposed by Government to satisfy the Troika bailout deal.

“In addition to disproportionately increasing its tax take from lower paid workers in Budget 2012, the Government has failed to sufficiently tackle the unfair nature of the Universal Social Charge (USC). Mandate acknowledges the fact that the Government has removed workers earning up to €10,036 per annum from the USC net – an increase from the previous €4,004 threshold. However, we believe they should have gone much further.

“Mandate Trade Union has called for the abolition of the Universal Social Charge for all workers on income of less than €16,016 per year or €308 per week. While higher paid workers are allowed tax breaks totalling over €800 million per year in private pension contributions, lower to middle income workers, many of whom can’t afford private pension schemes are being penalised by this mean and unfair USC.

“Unfortunately, the current Government has missed the opportunity to right the wrong done by the last Government and give lower paid workers a break at this most difficult time” he concluded.