Minister Donohoe encourages employers to avail of the new Employment Wage Subsidy Scheme
Finance Minister Paschal Donohoe today encouraged employers to register for the new Employment Wage Subsidy Scheme which replaces the Temporary Wage Subsidy Scheme from the 1st of September 2020.
The Government is committed to supporting employers by means of a wage subsidy, and since March over €2.7 billion of support has been given to over 69,500 employers via the Temporary Wage Subsidy Scheme (TWSS) covering over 600,000 workers.
The new EWSS is an economy-wide support open to all sectors and gives a subsidy to qualifying employers on the basis of the numbers of paid employees on the employer’s payroll.
The EWSS will replace the Temporary Wage Subsidy Scheme from the 1st of September. Both schemes have run in parallel from July 31st until the TWSS concludes at the end of August to provide additional flexibility to employers with new hires and seasonal workers who were not previously eligible to be paid via TWSS and who may now qualify for EWSS.
The primary qualifying criteria for the EWSS is that the employer must be able to demonstrate that in the majority of cases they are operating at no more than 70% in either the turnover of the employer’s business or the customer orders received by the employer by reference to the period from July to December 2020 compared with the same period in 2019.
Commenting on the introduction of the EWSS, Finance Minister Paschal Donohoe said,
The EWSS is the centrepiece of the Government’s July Jobs Stimulus and I would like to encourage all employers and businesses who believe that they will continue to experience a significant decline in their level of turnover or customer orders as a result of the pandemic to avail of it.
The EWSS has been designed with the needs of employers and businesses at its heart and is simple to qualify for, straightforward to operate and broad in its availability.
Furthermore, employers will continue to pay PRSI at the very significantly reduced rate of 0.5% for jobs that are supported by the subsidy.
The EWSS is intended to provide employers and businesses with a high degree of certainty that this Government will continue to support them through the uncertain period ahead for the economy and put them in a position to retain key staff end ensure viability so that they are in a strong position as the economy recovers.