Universal service charge's effects on income
John: Does the new universal service charge apply to the contributory state old-age pension or to farming income?
All payments from the Department of Social Protection, formerly the Department of Social Welfare, are exempt from the universal social charge.
This includes the contributory state old-age pension. John’s farming income will not be exempt from the Universal Social Charge . However, if John is 70 or over he will be liable to the universal service charge on income greater than €16,016 at a reduced rate 4pc instead of the standard universal service charge rate of 7pc.