The National Executive Council (NEC) of SIPTU has placed a motion on the agenda of the Labour Party conference in February calling for the abolition of the USC.

It should be replaced by a progressive tax which could secure the €4 billion which is recovered through the USC.

The USC is at odds with the generally progressive character of the PAYE system in that a person on the minimum wage pays at the same level as those at the top of the income spectrum.

It could be removed over successive budgets, commencing with those lower paid workers affected by the charge.

The USC was a tax introduced in January 2011 and is paid on gross income. Under Budget 2015, incomes of €12,012 or less will be exempt from the charge.

A replacement for the revenue can be found by targeting wealth and higher incomes. In this respect the union will oppose any attempt to reduce income tax for the highest earners.