Wage Subsidy Scheme

The Wage Subsidy Scheme (WSS) encourages employers to employ disabled staff. It offers employers financial support to employ people with a disability through a subsidy.

The work offered must be for a minimum of 15 hours per week and the subsidy is available up to 39 hours per week. The subsidy rate is between €6.30 and €9.45 per hour, depending on the number of workers employed under the scheme.

Where an employee with a disability has a limited ability to work due to their disability or health condition, an employer can get the wage subsidy to help cover the costs of significantly adapting the job’s tasks or role.

An employee with a disability on the scheme has the same conditions of employment as other employees.

To be eligible for the Wage Subsidy Scheme, an employer must be:

• a non-public sector employer
• tax compliant

The Wage Subsidy Scheme is available to employers who employ people with a disability for 15 to 39 hours a week.

An employer can offer more than 39 hours work a week. However, the Wage Subsidy Scheme can only be claimed for up to 39 hours.

Third parties

The Wage Subsidy Scheme is only available to the company or organisation that directly employs the person to do a job. It cannot be used by any other third parties or agents, such as employment agencies or contractors, on behalf of the employer or employee.

Employees are eligible for the Wage Subsidy Scheme if they:

• are age 18 and over, up to pensionable age
• have a disability or health condition which reduces their ability to work and, as a result, the job’s tasks or role must need to be significantly adapted by the employer
• have a contract of employment of at least 6 months
• work at least 15 hours per week in that employment
• are a new or an existing employee in their current employment for less than 12 months or taking up or returning to work on Partial Capacity Benefit if they have acquired a disability or health condition in the last 12 months

The employee does not need to receive a disability payment to qualify for the Wage Subsidy Scheme.

However, if the employee is getting one of the following social welfare payments, no further medical assessment is required:

• Blind Pension
• Disability Allowance
• Disablement Benefit (awarded at 20% or more for life)
• Partial Capacity Benefit

People can ask to move from Illness Benefit or Invalidity Pension to Partial Capacity Benefit to take up employment. They can only qualify for the Wage Subsidy Scheme if they have acquired a disability or health condition in the last 12 months and are returning to work on Partial Capacity Benefit. No further medical assessment is required.

If the employee does not receive one of the listed social welfare payments, their disability or health condition must be confirmed by a recent specialist’s report or doctor’s letter. The employee’s doctor or specialist must also fill out the Confidential Medical and Functional Capacity Report.

A person with a disability employed through the Wage Subsidy Scheme must have the same conditions of employment as other employees. These include:

• social insurance (PRSI) contributions
• tax deductions
• annual leave,
• and other leave entitlements

The employer must pay the employee the going rate for the job. This must be at least the statutory minimum wage. These terms and conditions of employment should be set out in the employee’s contract.

The subsidy rate is based on how many employees the employer hires through the Wage Subsidy Scheme.

Strand 1:

The base wage subsidy paid to employers who employ people with a disability is €6.30 per hour.

Strand 2:

An employer can get an automatic increase in the subsidy payment rate if they hire more employees on the Wage Subsidy Scheme. Strand 2 grants are paid as follows:

Strand 3:

An employer who employs 25 or more employees on the Wage Subsidy Scheme may receive a grant of €30,000 towards the cost of employing an Employment Assistance Officer (EAO).

A company is limited to 5 EAOs.

To apply for the Wage Subsidy Scheme:

• the employer fills out the employer application form (see below) and an EFT bank mandate (see below)
• the employee fills out the employee application form (see below) and meets an Employment Services Officer from the department to register on the WSS system as someone with a disability
• the employer and employee agree that the employee has a limited ability to do their job due to their disability or health condition and, as a result, the job’s tasks or role must be significantly adapted
• the employer must have tax clearance – the employer should provide a tax clearance access number and a printout of the tax clearance application result for electronic tax clearance as proof of this. The subsidy cannot be paid without an up to date tax clearance certificate.
• the employer must also provide a signed contract of employment detailing the terms and conditions of employment, including gross wage, job description (and person specification if available), annual leave, sick leave, and maternity/paternity leave entitlements. The contract of employment must be for a minimum of 6 months

If an application is approved, the department will write to both the employer and employee to confirm the terms of approval.

Welfare Partners is the department’s digital service for business partners. The following WSS services are available on Welfare Partners:

• submit Wage Subsidy Requests (WSRs) for funding
• review WSRs submitted and associated payments
• review scheme claim and participant details

You can find more information on how to submit wage subsidy requests on Welfare Partners.

You can find out more information by contacting your local Intreo

Operational guidelines describe the processes and procedures that staff in the department follow when carrying out their work.

Operational Guidelines: Wage Subsidy Scheme