Change in USC threshold to account for increase in national minimum wage

Jan 13, 2020

As a result of the decision to increase the National Minimum Wage the USC threshold will see the current ceiling of the 2 percent rate raised from €19,874 to €20,484.  This change announced by the Minister for Finance will be legislated for in Finance Bill 2020 which is expected to be at the end of the year.  In the interim Revenue will implement the increase on an administrative basis for the 2020 tax year. 

The statement from the Department of Finance tells us that all individuals with income over €19,874 will benefit by the increase as less income will be subject to the 4.5 percent rate.   The maximum benefit per person is €15.25 or 29 cent per week.

The change will be made to section 531AN Taxes Consolidation Act 1997

We will be engaging with Revenue via TALC on the administration of this threshold increase for 2020 and we will inform you of any updates.