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McAdam welcomes enhancements to Wage Subsidy Scheme

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Fine Gael Dublin City Councillor and Group Leader, Ray McAdam, has welcomed today’s announcement by Government of changes and enhancements to the Temporary Wage Subsidy Scheme (See Note to the Editors below with link for full scheme changes).

 

These changes mean that more employees will now receive a subsidy of €350 per week, and those with previous net pay below €412 per week will now receive a greater level of subsidy at 85% of net wages rather than 70% as previously applied. These changes will apply for payroll with a pay date on or after the 4th May and received by the Revenue Commissioners on or after that date. Furthermore, there are no changes to the eligibility criteria for Employers.

“I welcome the changes and enhancements announced today by Government in respect of the Temporary Wage Subsidy scheme. In summary this ensure that all employees on below €412 a week net will receive a subsidy of 85% of their net wages, up from 70% and also ensures that all employees are now eligible under this scheme.

“I would encourage local employers whose businesses have been impacted by the COVID-19 to avail of this Government Temporary Wage Subsidy Scheme. I fully understand the financial difficulties and worries this Pandemic is causing for viable businesses and their employees. This is an emergency wage support scheme designed to support employee wages, whilst maintaining the link between employer and employee as well as ensuring that businesses can survive and come through this COVID-19 induced economic downturn period.

“As they have arisen, I have sought to clarify issues with the Revenue Commissioners in relation to this wage subsidy scheme. The Revenue Commissioners are continually updating their Guidelines here, which are available on their website at http://www.revenue.ie.

“The main features of these changes and enhancements are;-

  • Those Employees earning €412 net per week, the subsidy will be increased from 70% to 85% of their net weekly pay. Also, now under the scheme an employer, if they wish, is allowed to pay a greater level of top-up beyond the outstanding 15% of pay, in order to bring the employee’s pay to €350 per week.
  • Those earning between €413 net to €500 net per week – subsidy will be up to €350 per week. Up to now it was based on 70% of net weekly earnings.
  • Those earning between €501 net to €586 net per week, there are no changes and they will continue to receive a subsidy of up to 70% of previous net income, up to a maximum of €410 per week.
  • All employees now qualify under the scheme. Up to now those employees who had earned a net weekly wage of €960 or more did not qualify under the scheme. However, they now qualify where their current net weekly wage is now below €960.
  • For all employees net pay in excess of €586 per week, a tiered approach will apply. The maximum subsidy payable for these remains €350 per week. The tiered approach takes into account both the amount paid by the employer and the level of reduction in pay borne by that employee as follows:

Gross Amount paid by Employer
Subsidy
Up to 60% of employee’s previous average net weekly pay
Up to €350 per week
Between 60% and 80% of employee’s previous average net weekly pay
Up to €205 per week
Over 80% of employee’s previous average net weekly pay
No subsidy payable

 

Note to Editors: Link to Government Announcement on Further Enhancements to Temporary Wage Subsidy Scheme
https://www.gov.ie/en/news/c3e1eb-minister-donohoe-announces-update-to-the-temporary-wage-subsidy-sche/

raymcadam View All

Fine Gael Councillor - North Inner City
Leader, Fine Gael, Dublin City Council
Chair, Urban Form & Planning Strategic Policy Committee

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