Dáil Éireann Debate, Thursday - 10 October 2024
260. Deputy Ged Nash asked the Minister for Health to outline the annual rate of the health levy contribution from 1990 up until it was merged into the universal social charge, any exemptions or exclusions that applied in each year; and if he will make a statement on the matter. [40717/24]
View answerThe details requested are set out below.
In 1979, the Health levy was introduced under the Health Contributions Act for private sector employees over the age of 16. Funds raised by the levy were used to by the Department of Health and Children vote to fund the health services.
The levy was charged on all reckonable earnings and was subject to a minimum threshold, under which individuals were not levied. All reckonable pay was gross salaries and wages as reduced by Superannuation and Permanent Health Insurance payments.
Exemptions from paying Health levy, regardless of income:
· Medical Card Holders
· Those aged 70 or older
· Social Welfare Widows/Widowers Allowance recipients
· One Parent Family Payment recipients
· Deserted Wife’s Benefit recipients
Below is an outline of the Health Levy contribution rates from 1990 until 2010, along with key exemptions for each year:
Health Levy Contribution Rates (1990-2010):
|
Year: |
Rate of levy: |
Exemptions: |
|
1990 |
1.25% |
Individuals with incomes below £16,700 |
|
1991 |
1.25% |
As above. |
|
1992 |
1.25% |
As above. |
|
1993 |
1.25% |
As above. |
|
1994 |
1.25% |
Exemptions for incomes below £9,000 |
|
1995 |
1.25% |
Exemptions for incomes below £9,250 |
|
1996 |
1.25% |
Exemptions for incomes below £9,750 |
|
1997 |
1.25% |
Exemptions for incomes below £10,250 |
|
1998 |
1.25% |
Exemptions for incomes below £10,750 |
|
1999 |
2.00% |
Exemptions for incomes below £11,250 |
|
2000 |
2.00% |
Exemptions for incomes below £14,560 |
|
2001 |
2.00% |
Exemptions for incomes below £14,560 |
|
2002 |
2.00% |
Exemptions for incomes below €356 per week (€18,512 annually). |
|
2003 |
2.00% |
Exemptions for incomes below €356 per week (€18,512 annually). |
|
2004 |
2.00% |
Exemptions for incomes below €356 per week (€18,512 annually). |
|
2005 |
2.00% |
Exemptions for incomes below €400 per week (€20,800 annually). |
|
2006 |
2.00% |
Exemptions for incomes below €440 per week (€22,880 annually). |
|
2007 |
2.00% (up to €100,100); 2.50% (over €100,100) |
Exemptions for incomes below €480 per week (€24,960 annually). |
|
2008 |
2.00% (up to €100,100); 2.50% (over €100,100) |
Exemptions for incomes below €500 per week (€26,000 annually). |
|
2009 |
Jan-March: 2.00% (up to €100,100); 2.50% (over €100,100), April-Dec: 4.00% (up to €75,036); 5.0% (over €75,036) |
Exemptions for incomes below €500 per week (€26,000 annually). |
|
2010 |
4.00% (up to €75,036); 5.0% (over €75,036) |
Exemptions for incomes below €500 per week (€26,000 annually). |
|
2011 |
N/A (merged into USC)* |
* The Minister for Finance announced that a new Universal Social Contribution (USC) would replace employee PRSI, the health levy and the income levy. It would be paid by everyone at a low rate on a wide base as a collective contribution to public services.
Key Exemptions or Exclusions:
- Exemption for low incomes: The Health Levy was not applicable to individuals whose incomes fell below a certain threshold. This threshold increased gradually over time.
- Social welfare payments: Recipients of certain social welfare payments (such as state pensions) were generally exempt from the Health Levy.
- Medical cardholders: Holders of medical cards were typically exempt from paying the Health Levy.
