Euro Currency

Wage Subsidy Scheme Extension

The Wage Subsidy Scheme has been vital for the continued survival of many Irish businesses amidst this current crisis, allowing them to keep staff on payroll during a time that otherwise may have necessitated mass layoffs. The scheme was changed to the Employment Wage Subsidy Scheme (EWSS) on September 1st and has now been extended until 31st March 2021, it is not yet known if the scheme will continue past this date.

With the current Level 5 restrictions, the Government announced that the rates for the scheme will be revised to better support businesses, with these new rates becoming effective as of October 19th. In terms of qualifying criteria, the turnover criteria for application is now 25% of the turnover for the same period in 2019.

Finance Minister Paschal Donohoe has said of these changes:

“Consistent with the revised health restrictions that have been announced by Government, a decision has been made to revise the pandemic supports that have been key to sustaining businesses and helping people to manage financially in the midst of this very challenging time. […] The Employment Wage Subsidy Scheme is being enhanced, with a maximum rate now payable at €350, bringing it in line with revisions that are being made to the Pandemic Unemployment Payment”.

Both the extension of and the newly enhanced nature of the scheme are intended to ensure that companies can keep their employees employed where possible and avoid layoffs and employees needing to revert to the Pandemic Unemployment Payment (PUP). It is hoped that these changes will help companies easier transition back to normal business activities when it is safe to do so.

Further information on all Covid-19 pandemic supports can be found on the Revenue website. As always, we here at Ecovis DCA are available should you have any concerns or queries.