Budget 2017: Workers will be up to €350 a year better off

The majority of workers will be better off by between €200 and €350 a year after Finance Minister Michael Noonan confirmed 0.5% cuts to the lowest three universal social charge rates.

The move is a central part of the Government’s tax changes in budget 2017, which also includes cuts to DIRT tax; increases in inheritance and capital gain tax thresholds; an “opt out” tax year for struggling farmers; and new self-employed supports — all announced as the finance minister said the tax cut lessons from the crash “must not be forgotten”.

Under plans announced by Mr Noonan in yesterday’s Dáil debates, the lowest three rates of USC — 1%, 3.5% and 5.5% — will all be reduced by 0.5%.