Operational Guidelines: Wage Subsidy Scheme

The Wage Subsidy Scheme aims to increase the likelihood of people with disabilities getting and sustaining employment in the open labour market by giving financial incentives to employers.

A person with a disability, with the appropriate supports, such as assistive technology, may be perfectly capable of working full-time to the same standard as a person without a disability.

However, situations where an employee’s ability to work is limited due to their disability or health condition and the employee’s tasks or role need to be significantly adapted, the Wage Subsidy Scheme allows the employer to claim a wage subsidy funded by the Department. The subsidy is only payable to employers who employ people with a disability who work 15 hours per week or more, and is payable for a maximum of 39 hours a week.

Important note

If an employer is availing of the subsidy, the employee should be subject to and have the same rights and conditions of employment as any of their other employees. These conditions should include; but are not limited to:

• an employment contract set out with the terms and conditions of employment
• payment at the going rate for the job - this must be at least the statutory minimum wage
• annual leave and other leave entitlements being given
• employment tax deductions
• Class A PRSI contributions being paid

The financial supports for employers are structured under three separate strands. Companies can benefit under one strand or under two or three strands simultaneously, depending on the number of people with a disability employed, as explained below.

Strand 1

Strand 1 subsidy is a general subsidy for employers who must significantly adapt the job’s tasks or role so their employee with a disability can do their job. An employee must work for a minimum of 15 hours per week up to a maximum of 39 subsidised hours per week. The rate of subsidy is €6.30 per hour and the amount of the subsidy is based on the number of hours worked. The maximum annual subsidy payable is €12,776 per year based on a 39-hour week.

Example

An employer, employee and the Department of Social Protection agree that the employee has a limited ability to do their job due to the employee’s disability or health condition and so, the job’s tasks of role need to be significantly adapted.

• The Department of Social Protection pay a Strand 1 Subsidy to the employer based on the number of hours worked, at an hourly rate of €6.30, up to a maximum of €12,776 per year for a 39-hour week.
• For example, if the employee is working 30 hours per week, the weekly wage subsidy payable to the employer will equal 30 x €6.30 = €189.00.
• The employer pays 100% of the gross wage as advertised to the employee.

Please see the Appendix which gives calculations for the amount of subsidy in relation to hours worked per week. Weekly and yearly rates are shown.

Strand 1 Wage Subsidy Requests (WSRs) are generated at the end of every 4 week cycle for any employees who are active at the time of WSR generation. Payment is made on receipt of completed WSRs, if all is in order.

An active employee is an employee who has worked or been on paid leave at any time in the 4 week payment cycle, and for whom a Strand 1 wage subsidy is payable. Any employee who has been on unpaid leave for the entire 4 week cycle is regarded as inactive. No wage subsidy (Strand 1,2 or3) is payable for an inactive employee.

Strand 2

Strand 2 subsidy is intended to cover the additional supervisory, management and other work based costs which may derive from a company’s decision to employ three or more people with a disability. This increase or “top up” is a percentage of the Strand 2 wage subsidy and is based on the overall number of active employees with a disability employed under Strand 1.

The Strand 2 percentage is calculated automatically, based on the number of active employees with a disability currently employed by that employer at the time that all of the WSRs for that payment cycle are approved for payment.

Strand 2 grants will be paid as follows:

Strand 3

Strand 3 subsidy allows an employer who employs 25 or more active employees with a disability and is getting the Wage Subsidy Scheme based on same to be eligible for a grant as a contribution towards the employment and expenses of an Employment Assistance Officer (EAO).

The EAO role can be claimed for where it has been put in place by the employer to support and assist the relevant employees with their needs in employment. The focus of the EAO’s work is to be on the personal, social, health or family circumstances of employees (with a disability), which might prevent them from remaining in employment. The grant for this Strand is €30,000 per year, per EAO employed, based on the employment of 25 people with a disability in each payment cycle of that year.

The grant is not paid on a pro-rata basis. For example, if a company is being paid the Wage Subsidy Scheme where 45 employees with a disability are employed, only one grant of €30,000 for an EAO is paid. When 50 people with a disability are employed under the Wage Subsidy Scheme, an additional grant of €30,000 can be applied for to employ a second EAO. There is a limit of 5 EAO positions which may be subsidised under the Wage Subsidy Scheme in any one company.

The grant is calculated automatically by the system, if an employer has 25 or more active employees and an approved EAO. The grant is paid in 4-weekly instalments of €2,307.70, to a maximum of 13 payments per calendar year. If the number of employees with a disability falls below 25 (or a multiple of 25) at any stage during the year, then payment will stop (or be reduced) until the original quota is reached again.

Employer

The Wage Subsidy Scheme is available to non-public sector employers - in the State, including employers in the private sector, community and voluntary sector, and not-for-profit sector.

An employer is considered a public sector employer where they meet the definition of public bodies in Part 1, Section 2 of the Disability Act 2005 or where a public service pension scheme exists.

A public service body is defined as a person or body funded by the Oireachtas (including employers providing services on behalf of the Department of Social Protection), the Central Fund, or where a public service pension scheme exists or may be made. This includes the Department of State, the Office of the President, the Office of the Attorney General, the Office of the Comptroller and Auditor General, the Office of the Houses of the Oireachtas, a local authority, the Health Service Executive, schools, boards of management and education providers wholly or partly funded by the Department of Education and Science or the Department of Further and Higher Education, Research, Innovation and Science (DFHERIS).

Where there is uncertainty regarding eligibility of the organisation, the Department of Social Protection will review the appropriate published company accounts, particularly those for the previous financial year. Final decisions regarding eligibility will be made on a case-by-case basis.

The Wage Subsidy Scheme cannot be availed of by third parties, such as recruitment agencies or other agents who may be engaged by a company/organisation to source employees, provide support and payroll services for these employees. The subsidy is only available to the company/organisation where the employee is tasked to carry out their duties or tasks of employment.

The employment being offered by the employer must be for a minimum of 15 hours (and up to a maximum of 39 subsidised hours) of employment for the employee per week.

The Wage Subsidy Scheme will only be considered where:

• the employee is less than 12 months in that employment and their limited ability to do their job as a result of a disability or health condition is putting that particular employment at risk, or
• the employee acquires a disability or health condition in the last 12 months and takes up employment or returns to work on Partial Capacity Benefit.

Applicants will only be approved for payment of a wage subsidy from the date that the application is received in the Department of Social Protection.

The wage subsidy can only be paid to employers who are tax compliant. By applying for the Wage Subsidy Scheme, employers agree that the Department of Social Protection has permission to check their status with the Revenue Commissioners.

The Wage Subsidy Scheme should not be used to test an employee’s suitability with an employer. The Employability Service may be able to advise in those circumstances.

Learn more about the Employability Service here.

An employee can only be employed under one Wage Subsidy Scheme subsidised employment. The Department of Social Protection will not pay more than one subsidy for any one employee.

An employer getting a subsidy under the Wage Subsidy Scheme cannot receive further support from the State towards the employment costs of the same employee. An employer cannot avail of the Wage Subsidy Scheme if they are receiving support - or propose to apply for support - from other State sources to support an employee.

Employee

Where an employer wishes to avail of the subsidy, access to such funding depends on the criteria below for the employee:

1.The employer can only apply for an employee who is aged 18 and over. The subsidy is payable until the employee is eligible to apply for a State Pension.

A potential employee must be at least 18 years old as this is the minimum age at which they may avail of support from the Department of Social Protection employment services or from the Employability Service.

2.The employee must have a disability or health condition which reduces their ability to work. As a result, the job’s tasks or role must need to be significantly adapted by the employer3.The potential employee will not have to undertake a further medical assessment for their employer to avail of the Wage Subsidy Scheme if they receive one of the following disability payments:

• Disability Allowance
• Blind Pension
• Disablement Pension awarded at 20% or more for life (final, not provisional)

Currently, Disability Allowance and Blind Pension, recipients can take up employment and may continue to receive their income support through an earnings disregard.

To get the earnings disregard, the person must write to the Disability Allowance or Blind Pension Section within the Department of Social Protection to notify them of commencement of employment.

Further details are available on the Disability Allowance Scheme and the Blind Pension Scheme

4.The potential employee will not require a further medical assessment if they are in receipt of the payments below but must come off these payments, for their employer to avail of the Wage Subsidy Scheme:

• Illness Benefit
• Invalidity Pension

The potential employee can transfer to Partial Capacity Benefit to take up employment. Partial Capacity Benefit is available to people whose capacity to work is reduced as a result of their disability or medical condition. The payment rate is based on a medical assessment of a person’s restriction on their capacity to work. People can be assessed as moderate, severe or profound. There are no limits to how much people can earn on Partial Capacity Benefit. Further information on Partial Capacity Benefit is available on the scheme page.

An employer can apply for the Wage Subsidy Scheme when their employee has acquired a disability or health condition in the last twelve months and returns to work on Partial Capacity Benefit. No further medical assessment is required.

5. Getting a qualifying disability payment is not a requirement for the Wage Subsidy Scheme.

If the potential employee is not in getting a Department of Social Protection disability payment, the disability, especially if it is an invisible disability (such as mental ill health, epilepsy, autism, or acquired brain injury), should be confirmed by a recent specialist’s report or doctor’s letter. This provision also applies to applicants who have been awarded a Disablement Pension or Gratuity assessed at less than 20% for life, or who have been awarded Disablement Benefit based on a provisional assessment.

To qualify for the Wage Subsidy Scheme the person’s doctor must also complete a confidential medical report form to confirm that they have a disability and that it is reducing or will reduce their ability to work so they require significant adaptations to their job.

6. People getting the following Social Welfare payments can retain their payment while in employment, but this may be subject to means testing:

• Widow’s, Widower’s or Surviving Civil Partner’s Contributory Pension
• One Parent Family Payment
• Disability Allowance
• Blind Pension
• Disablement Benefit

People can also retain Partial Capacity Benefit in limited cases, as explained in Point 4.

7.The wage subsidy cannot be paid if a person is fully unemployed and in receipt of Jobseeker’s Allowance.

The wage subsidy will not be payable until the Department of Social Protection is satisfied that the employee has closed their Jobseeker’s Allowance claim and is no longer getting this payment if starting full-time employment.

However, Jobseeker's Allowance may be payable where the person is unemployed for 4 days within a 7-day period (a ‘period of unemployment’), which includes all days of the week (including Sunday). The person must satisfy all of the qualifying conditions for Jobseeker’s Allowance. Further details can be found at your local Intreo or on the Jobseeker's Allowance scheme.

Jobseeker's Benefit may be payable if a person becomes become fully or partly unemployed i.e. a person is unemployed for 4 days within a 7-day period (a ‘period of unemployment’), which includes all days of the week (including Sunday) and has paid enough pay-related social insurance (PRSI) contributions. Further information on Jobseekers Benefit.

8. A person who has just stopped claiming Jobseeker’s Allowance and who had at least one child on the Child Support Payment through their Jobseeker’s Allowance claim may be eligible to claim Back to Work Family Dividend. An employee on the Wage Subsidy Scheme who has at least one dependent child and whose means are not sufficient to meet the needs of their family, may also be eligible to claim Working Family Payment – see Section 10: In-work income supports.

9. A person in receipt of Jobseeker’s Allowance who gets part-time work for more than 15 hours and less than 24 hours with an employer who is in receipt of a Wage Subsidy Scheme payment for that person may participate in the Part-Time Job Incentive Scheme (PTJI) – see Section 10: In-work income supports.

10. For people who are already in employment, the Wage Subsidy Scheme may only be considered where:

• the person is less than 12 months in that employment and the job’s tasks or role have or have had to be significantly adapted so the individual with a disability can do their job. This is to avoid the possibility of people with disabilities being let go by their employer so they can qualify for the Wage Subsidy Scheme. The incentive is intended to encourage non-public sector employers to take on new employees with a disability. Applicants will only be approved for payment of a wage subsidy from the date that the application is received in the Department of Social Protection.

or

• an employee has acquired a disability or health condition in the previous 12 months and returns to work on Partial Capacity Benefit. The job’s tasks or role must need to be significantly adapted so the employee can return to work. This aims to ensure that employees who acquire a disability can keep their job or return to work.

The Wage Subsidy Scheme should not be used to test an employee’s suitability with an employer. The Employability Service may advise in those circumstances.

Further information about the Employability Service can be found here.

11. A not-for-profit business may employ people under both the Community Services Programmes or another Pobal programme funded by the Department of Social Protection, and under the Wage Subsidy Scheme, but not for the same post of employment. The not-for-profit business should generate more of its income from its business activities than from state funding, as required for Wage Subsidy Scheme eligibility.

Pobal gives annual listings of approved programmes on their website at: Pobal.ie

12. Placements under the Community Employment Scheme, Tús, the Rural Social Scheme and the Work Placement Experience Programme are not eligible for the Wage Subsidy Scheme, as these programmes are entirely funded by the Department of Social Protection.

13. Persons with a disability who are considering self-employment cannot avail of the Wage Subsidy Scheme. This provision also applies to directors of limited companies who work as paid employees in their company.

14. Spouses or prescribed relatives (parent, grandparent, stepparent, child, grandchild, stepchild, sibling or half-sibling) can only be considered eligible for participation in the Wage Subsidy Scheme where the employment is deemed insurable under the Social Welfare Acts (Chapter 2 of Part 2 of the Social Welfare Consolidation Act 2005 refers) (at PRSI Class A) and the application is approved by the Department.

15. JobsPlus and the Wage Subsidy Scheme cannot be paid together in relation to the same post of employment. An employer should apply for whichever job incentive scheme is appropriate to the circumstances.

16. When a person can no longer continue in the employment for which the Wage Subsidy Scheme is payable and they:

• were previously in receipt of Disability Allowance or Invalidity Pension, and
• have been in employment for less than 12 months,

The Disability Allowance or Invalidity Pension payment will automatically be restored without the need to re-apply.

In the case of both payments, the client should simply contact the relevant Scheme Section in the Department of Social Protection.

17. Employment that is deemed to displace existing employment will be ineligible and the Department of Social Protection reserves the right to reclaim the payment if an employer engages in any action that displaces existing employees or conspires to create a situation where employees are made redundant to seek financial support under the Wage Subsidy Scheme.

An employer who is deemed to have engaged in any action that displaces an existing employee to seek financial support under the Wage Subsidy Scheme may be disqualified from making any new application for the Wage Subsidy Scheme for 12 months from the date of displacement.

18. An employee can only be employed under one Wage Subsidy Scheme subsidised employment at any given time.

Strand 1

The employer should contact their local Intreo Centre about the Wage Subsidy Scheme.

The employer can request:

• an: Employer Application form (WSS1ER)
• an Employee Application form (WSS1EE) for the job being filled,
• a Department of Social Protection EFT Bank Mandate (Supplier Set-up Form V05-2018) and
• a Work Adaptation Report form (WSS 2) from their local Intreo Centre or from a Department of Social Protection Employment Services Case Officer (more details on these forms on page 15).

All forms can be downloaded here.

A person who wishes to be employed, where their employer is applying for the Wage Subsidy Scheme, must first meet an Employment Services Officer in the Department of Social Protection. They must also be registered on the Department’s ICT System as a person with a disability, whether or not they are getting a disability support payment. The person who wishes to be employed must tell the Employment Services Officer that they have a disability. The Employment Services Officer will then select the appropriate option on the ICT system to confirm that the client has a disability and may require supports.

If a person is not getting a qualifying disability payment, they should give the Employment Services Officer a confidential Wage Subsidy Scheme Medical and Functional Capacity Report form completed by their doctor. This should be supported by a recent specialist’s report or doctor’s letter. The Confidential Medical and Functional Capacity Report form is available at Intreo Centres or from an Employment Services Officer or it can be downloaded from the Wage Subsidy Scheme page.

The person with a disability must have successfully obtained an offer of employment for 15 hours per week or more, up to a maximum of 39 subsidised hours per week. The employer and employee must 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 need to be significantly adapted.

The person with a disability must be:

• a new employee for that company, or an employee who has been employed in that company for a period of no longer than 12 months. During that time they may have acquired a disability that affects their ability to work or they may have had a disability when they were employed by the company, but their ability to work has disimproved since then.

or

• an existing employee who has acquired a disability or health condition in the last 12 months and is returning to work on Partial Capacity Benefit.

The nature of the proposed work must not have an adverse effect on the health or impact further on the disability of the employee or prospective employee.

Forms to be completed:

1. The employer should complete the WSS1ER form.

2. The employee should complete the WSS1EE form.

3. Both the employer and the employee should complete the Work Adaptation Report form (WSS 2).

4. If the Department of Social Protection does not already hold the employer’s bank account details, or if the employer’s bank account details have changed and are not those currently held by the department, the employer should complete a Department of Social Protection EFT Bank Mandate (Supplier Set-up Form V05-2018). Please give details of the account the wage subsidy should be paid into. If the employer is changing bank account details currently held by the Department of Social Protection, they must ask their bank to countersign and stamp the form.

The employer must submit these three (or four) forms together with a signed Contract of Employment detailing the terms and conditions of employment, including:

• the gross wage for the employment
• job description (and person specification if available)
• annual leave, sick leave and maternity/paternity/adoptive leave entitlements
• the contract should also state the employee’s intended/usual hours of work, which must be for a minimum of 15 hours per week

The Contract of Employment must be for a minimum of 6 months

To prove tax compliance, employers must supply a current Tax Clearance Certificate or a Tax Clearance Access Number (TCAN) at the time of application. Before a payment is made, an employer is automatically checked for tax compliance and where it cannot be validated payment will not issue.

The employer should send the Wage Subsidy Scheme application forms, along with all the supporting documentation, to their local Intreo Centre, or to the Employment Services Officer in the Department of Social Protection dealing with the case if they know who this is, for consideration. All forms can be forwarded by email to the relevant Employment Services Officer, if known.

If the application is complete and in order, the Employment Services Officer will make a recommendation for approval to their manager.

If there are any issues with the application, the employer and employee will be given an appointment to meet an Employment Services Officer. The Employment Services Officer will check that the employee with a disability is being or will be paid similar wages and employed on similar terms to any other employee starting work or working with that company who is doing the same work.

After reviewing the application, the Employment Services Officer will make a recommendation for approval to their manager.

If the Wage Subsidy Scheme application is approved, the Employment Services Officer will send a letter of approval to the employer to confirm their Wage Subsidy Scheme employer registration number, the start date (and, if relevant, proposed finish date) and agreed contracted hours per week for the approved employee.

The Employment Services Officer will also send a letter of approval to the employee.

If an employer proposes to make any amendments to the contract of employment/job description they must request approval in writing from the Department of Social Protection at least four weeks in advance, before implementing any such changes. This includes changes to the working hours of the employee.

If the Wage Subsidy Scheme application is not approved, the Employment Services Officer will write to the Employer outlining the reason(s) for non-approval. However, the Employer may request a review of this decision. This is explained further in Section 11: General conditions.

Strand 2

The employer does not need to apply for Strand 2 Wage Subsidy Scheme funding.

If the employer is getting Strand 1 payments for three or more active employees the Department of Social Protection’s ICT system will automatically calculate the Strand 2 percentage due.

If the employer has multiple workplaces, they must ensure that all active employees at those workplaces are registered under the same Employer Registered Number (PAYE number), for the correct Strand 2 payment to be made.

Strand 3

The following steps should be taken to apply for Strand 3 Wage Subsidy Scheme funding.

The employer should be in receipt of Strand 1 Wage Subsidy Scheme payments for at least 25 active employees with a disability to apply for Strand 3 funding.

The employer should complete an Application for Strand 3 form (WSS 4), which they can obtain from an Employment Services Officer or they can download the form from Wage Subsidy Scheme page.

The application should be supported by:

• proof of advertisement for the Employee Assistance Officer role
• a job specification for the EAO role
• a CV for the successful applicant for the post, including details of the relevant qualifications they have that would make them suitable for the post
• a copy of the EAO contract of employment

The completed form and supporting documentation should be sent to their local Intreo Centre, which will arrange an appointment for the employer and Employee Assistance Officer to meet an Employment Services Officer.

If the Strand 3 application is approved, the Employment Services Officer will write to the employer to notify them of this.

If the Strand 3 application is not approved, the Employment Services Officer will write to the employer outlining the reason(s) for non-approval. However, the employer may request a review of this decision – see Section 10: General conditions.

If an Employee Assistance Officer for whom a Strand 3 payment is being made leaves their employment, and the employer proposes to employ a replacement EAO, the employer must make a new application for Strand 3 funding in respect of the new EAO.

Change of Employer Status

Where there is a change in a company through, for example take-over, acquisition, restructuring or rationalisation, the existing payment of the Wage Subsidy Scheme will stop. The new organisation must apply for the Wage Subsidy Scheme for its eligible employees.

Strand 1

The Department of Social Protection will generate a Wage Subsidy Request (WSR) on Welfare Partners for each employer’s workplace every 4 weeks. Welfare Partners is the Department of Social Protection’s digital service for business partners.

The electronic WSR will list all the Wage Subsidy Scheme participants employed at each workplace. The workplace primary contact email supplied by the employer will be notified when the WSR is ready for completion on Welfare Partners.

The employer should inform the department of changes to the supplied workplace email address(es). For further information on accessing and using Wage Subsidy Scheme on Welfare Partners, please refer to the user instructions at Gov.ie

The WSR will specify the calendar dates for which Wage Subsidy Scheme payment is due for the employee(s).

The employer should fill in the hours worked by the employee(s) each week and the total gross wage paid for the 4 week period. The employer may select the option to pre-populate the 4 week period by selecting the ‘Fill with contracted hours (number. per week)’ box.

Periods of paid leave may be included as hours worked, but the Wage Subsidy Scheme payment may be affected if the employee is in receipt of a Social Welfare payment (see section 6) If the leave type during the period relates to either Sick Leave, Maternity Benefit, Paternity Benefit, Parental Benefit etc., the employer should select the option ‘Select if the participant was on paid leave (Illness/Maternity/Paternity/Parents Benefit)’. This will allow the department to apply the correct Wage Subsidy Scheme funding for the cycle. Do not select this option when referring to paid annual leave or public holidays.

Periods of unpaid leave will not be counted towards the Wage Subsidy Scheme. Leave should be explained in the Comments area of the WSR . If zero hours have been worked, a nil return should be submitted.

The WSR will be electronically issued to the Wage Subsidy Scheme Payments Section upon its submission on Welfare Partners.

If the WSR is fully and correctly completed and it meets the scheme criteria for payment the Wage Subsidy Payments Section will authorise it for payment.

If the WSR is incorrect or incomplete or doesn’t meet the scheme criteria for payment, the Wage Subsidy Payments Section will return it on Welfare Partners to the employer for correction or completion. As this will cause a delay in payment the employer should check that the WSR is correctly completed before they submit it to the Wage Subsidy Payments Section.

Payment is made by electronic fund transfer using the bank account details supplied by the employer. The employer should notify the Department of Social Protection immediately if there is any change in these details.

Deadline for returning Wage Subsidy Requests

Employers must submit all Wage Subsidy Requests (WSR) to the Department of Social Protection within 12 weeks of the date of issue or a wage subsidy may not be paid.

If there is an issue that prevents an employer from submitting a WSR within the required timeframe, the employer must immediately inform an Employment Services Officer in the Department of Social Protection of the matter in writing setting out the reason for the delay in full.

If an employer receives a WSR listing for an employee who no longer works for them or who is currently on leave, they should still submit the WSR to the Department, with the relevant information in the Comments section letting the department know the date the employment ended or to explain that the employee is on leave.

Strand 2 and Strand 3

The Wage Subsidy Scheme Strands 2 and 3 will automatically be calculated by the Department of Social Protection’s ICT system when all WSRs issued for a 4-week cycle have been approved for payment.

In addition, for Strand 3, an EAO must be approved for payment on the system. Payment is made by electronic fund transfer.

A remittance will issue to the employer’s primary contact email address, giving a breakdown of each payment.

Hours worked

A core objective of the Wage Subsidy Scheme is to incentivise non-public sector firms to provide at least 15 hours of employment per week to people with disabilities.

To verify that this condition is met, Wage Subsidy Scheme employers are required to complete a 4-weekly Wage Subsidy Request (WSR) for all their Wage Subsidy Scheme employees. These WSRs detail each employee’s wage subsidy rate and their agreed number of working hours per week for each of the four weeks to which the WSR relates.

A minimum of 15 hours must be worked in any one week. Any difference between the agreed number of working hours (15 hours being the minimum number set out in the WSR) and the actual hours that were worked (set out in the actual hours worked per week column) should be explained in the space for comments on the WSR.

When no salary at all is being paid by the employer, no wage subsidy payment will be made to the employer.

Stopping or reducing the payment

The concept of a job being adapted due to a person’s disability is not static. As a person with a disability gains experience and becomes more able to do a job, they may be able to do their job with less or no adaptations.

The adaptations to the job’s tasks or role as agreed at the outset, will be reassessed every 12 months:

• if, during the annual review, the employer, employee and Employment Services Officer agree that fewer or no significant adaptations are required; or
• if, having reviewed the case, the Employment Services Officer considers that there are fewer or no significant adaptations required any more,

the Employment Services Officer may decide to stop payment of the Wage Subsidy Scheme.

Strand 1

Strand 1 payment will be stopped if the employee leaves the employment, if the employee is on unpaid leave from work, or if, on review, an Employment Services Officer decides that the conditions for the scheme are no longer being met.

Strand 1 payment will be reduced if the hours worked are reduced or if the employee is on paid leave from work and claiming a Department of Social Protection payment – see Section 6.

Strand 2

Strand 2 payment will be stopped if the number of employees for whom a Wage Subsidy Scheme payment is due falls below three for any reason, or if, on review, an Employment Services Officer decides that the conditions for the Wage Subsidy Scheme are no longer being met in respect of any or all employees of a particular company.

Strand 2 payment will be reduced if the number of employees for whom a Wage Subsidy Scheme payment is due is reduced, for example, from 7-11 employees (20%) to 3-6 employees (10%).

Strand 3

Strand 3 payment will be stopped if the number of employees for whom a Wage Subsidy Scheme payment is due falls below 25 for any reason, or if, on review, an Employment Services Officer decides that the conditions for the Wage Subsidy Scheme are no longer being met for any or all employees of a particular company.

Strand 3 payment will be reduced if the number of employees for whom a Wage Subsidy Scheme payment is due falls below a multiple of 25 for any reason.

Tax Clearance

An employer must be tax compliant. By applying for the Wage Subsidy Scheme, employers agree that the Department of Social Protection has permission to check their status with the Revenue Commissioners. Employers must supply a current Tax Clearance Access Number (TCAN) at the time of application. Before a payment is made an employer is automatically checked for tax compliance and where it cannot be validated payment will not issue.

Overpayments

If the Wage Subsidy Scheme is overpaid to an employer for any reason, the employer will be required to repay this overpayment to the Department.

Annual leave

Full-time employees have a statutory entitlement to payment for all public holidays and for a minimum of 20 days annual leave per year (1.66 days per month of employment).

Sick leave

Statutory sick leave is available to all employees who have been with their current employer for at least 13 weeks. This is currently available for up to five days per calendar year.

Whether or not an employer pays an employee while on sick leave apart from statutory sick pay is a matter of individual company policy. The company’s sick leave policy should be set out in the employee’s Contract of Employment.

Maternity leave

Female employees have a statutory entitlement to 26 weeks maternity leave and may take another 16 weeks unpaid maternity leave. Employers are not obliged to pay women on maternity leave – whether or not they do so depends on the terms of the Contract of Employment.

Paternity leave

Employees who are new parents (other than the mother of the child) are statutorily entitled to 2 weeks paternity leave within 6 months of the birth or adoption of a child. Employers are not obliged to pay parents on paternity leave – whether or not they do so depends on the terms of the Contract of Employment.

Adoptive leave

Currently, employees who are new parents are also statutorily entitled to 2 weeks Parent’s Benefit on the birth or adoption of a child. Employees can take 2 consecutive weeks or 2 separate weeks of leave. Employers are not obliged to pay parents on parent’s benefit leave – whether or not they do so depends on the terms of the Contract of Employment.

Adoptive mothers or males who are the sole adopter of a child are statutorily entitled to 24 weeks adoptive leave from work and may take another 16 weeks unpaid adoptive leave. Employers are not obliged to pay parents on adoptive leave – whether or not they do depends on the terms of the Contract of Employment.

Any enquiries about employment rights should be addressed to the Workplace Relations Commission. The Citizens Information Service website also provides useful information concerning employment rights.

When an employee is on annual leave, sick leave, maternity leave, paternity leave or adoptive leave and the employer’s company policy is to continue to pay the employee on leave their salary for a set period of time, the Department of Social Protection will continue to pay the agreed subsidy as long as the employer continues to pay the employee, subject to a maximum of seven weeks per year in the case of paid sick leave.

An employee’s absence from work should be explained by the employer in the Comments area of the Wage Subsidy Request when completing it. If zero hours have been worked, a nil WSR return should be made.

When no salary at all is being paid by the employer, no wage subsidy payment will be made to the employer.

Many employers deduct the amount of any social welfare payment being claimed by an employee from their weekly salary when they are absent from work. This is usually because the employee has nominated their employer to receive their social welfare payment. In this case, the Department of Social Protection will pay any shortfall between the two payments as a subsidy to the company.

If the amount of the social welfare payment being claimed by the employee (and paid to the employer) is greater than the amount of the wage subsidy that would usually be paid to the employer, no wage subsidy payment will be made to the employer.

Annual reviews

An annual review will be carried out in relation to each Wage Subsidy Scheme claim. The adaptations to the job’s tasks or role, as agreed at the outset, will be reassessed at this review. The review will be based on the performance of the employee in the previous 12-month period.

Where possible, an annual review will be carried out by means of an Employment Services Officer interview with the employer and employee at the workplace. In the case of an onsite annual review, the employer will be notified in advance of arrangements for the review.

During the review the Employment Services Officer will complete:

• a Review Form (WSS 3) and
• a Work Adaptation Report form (WSS 2) in consultation with the employer and employee. All parties will then sign the forms.

During the review, the Employment Services Officer may request:

• tax records
• PRSI records
• wage or time and attendance records, and
• a Confidential Medical and Functional Capacity Report

to check that the terms and conditions of the Wage Subsidy Scheme are being adhered to.

For the review, an up-to-date medical report will be required for employees who currently do not receive:

• Disability Allowance
• Blind Pension
• Partial Capacity Benefit.

The employee’s doctor must complete the Confidential Medical and Functional Capacity Report form to confirm that they have a disability that is reducing their ability to work and so, they continue to require significant adaptations to their job.

If this is not possible, it is acceptable for an annual review to be carried out by means of a desk review. A desk review will be carried out by the Department of Social Protection sending:

• a Review form (WSS 3)
• a Confidential Medical and Functional Capacity Report, and
• a Work Adaptation Report form (WSS 2) to the employer and employee for completion.

When completed, the declarations on both forms must be signed by both parties, and the employer should stamp both forms. Payment of the Wage Subsidy Scheme may be withheld if the employer does not return the completed forms within the specified time.

Monitoring

The Department reserves the right to conduct additional monitoring visits without notice to the employer’s premises, when and where required. During a monitoring visit the Employment Services Officer may request:

• tax records,
• PRSI records,
• wage or time and attendance records

to check that the terms and conditions of the Wage Subsidy Scheme are being adhered to or may ask to see the employee at work.

The Employment Services Officer may also contact the employee to check that the terms and conditions of the Wage Subsidy Scheme are being adhered to.

Rights of access

An employer can grant officials of the Department of Social Protection access to records, financial or otherwise, concerning the Wage Subsidy Scheme. At the request of department, the employer will provide rights of access and inspection to:

• the Department of Social Protection,
• its officers and agents, and
• the Comptroller and Auditor General

to all activities, records, persons and information which the department may reasonably require to verify compliance by the employer with the terms and conditions agreed in relation to payment of a wage subsidy by the department to the employer.

All records, both manual and electronic, relating to funding provided under the Wage Subsidy Scheme must be retained for as long as the wage subsidy is in payment and for six years after, and must be available for inspection.

Payment of the Wage Subsidy Scheme may be suspended or stopped if the employer does not agree to any reasonable request from an officer or agent of the Department of Social Protection to access any records they hold concerning the Wage Subsidy Scheme.

Breaches of the Terms and Conditions

If the department deems that an employer has breached the terms and conditions of the scheme, the employer may be disqualified from current and/or future participation in the Wage Subsidy Scheme, or may be monitored more closely.

Medical card

Medical card eligibility is determined by the Health Service Executive (HSE). If an employee / potential employee requires further information, they can contact their local office of the HSE.

The HSE guidelines are that any new Wage Subsidy Scheme entrant who has a medical card and who has been unemployed for at least 12 months prior to taking up employment on the Wage Subsidy Scheme, is automatically entitled to keep their medical card for three years from the date of commencement of employment. All such cardholders will then be assessed by means-tested review for subsequent periods of employment on the Wage Subsidy Scheme

Free Travel

Anyone who had Free Travel along with Blind Pension, Disability Allowance or Widow’s, Widower’s or Surviving Civil Partner’s Pension before taking up employment on the Wage Subsidy Scheme may still be entitled to Free Travel.

The employee should enquire with the relevant Scheme Section within the Department of Social Protection.

Household Benefits Package

Anyone who had the Household Benefits Package (allowances towards the cost of electricity, gas and television) along with Blind Pension, Disability Allowance or Widow’s or Surviving Civil Partner’s Pension before taking up employment on the Wage Subsidy Scheme may still be entitled to this payment.

The employee should enquire with the relevant scheme section within the Department of Social Protection.

Fuel Allowance

Anyone who had a Fuel Allowance along with Blind Pension, Disability Allowance, Widow’s or Surviving Civil Partner’s Pension or One-Parent Family Payment prior to taking up employment may still be entitled to this payment.

The employee should enquire with the relevant Scheme Section within the Department of Social Protection.

Living Alone Allowance

Anyone who had a Living Alone Allowance along with Blind Pension, Disability Allowance or Widow’s or Surviving Civil Partner’s Pension prior to taking up employment may still be entitled to this payment.

The employee should enquire with the relevant scheme section within the Department of Social Protection.

Island Allowance

Anyone who had an Island Allowance along with Blind Pension, Disability Allowance, Widow’s or Surviving Civil Partner’s Pension or One-Parent Family Payment prior to taking up employment may still be entitled to this payment.

The employee should enquire with the relevant scheme section within the Department of Social Protection.

In the case of all of the above allowances, if the employee does not inform the relevant scheme section within the Department of Social Protection or Intreo Centre that they have started employment and are paid an allowance to which they are no longer entitled, they will have to repay any overpayment to the Department of Social Protection.

Qualified Adult Allowance

Anyone who takes up employment whose spouse/partner is in receipt of a Qualified Adult Allowance for them on a Social Welfare claim should ask their spouse/partner to contact the relevant scheme area within the Department of Social Protection to check whether or not this is still payable.

If their spouse/partner continues to receive a Qualified Adult Allowance that is not due to them, they will have to repay any overpayment to the Department of Social Protection.

Back to Work Family Dividend

The Back to Work Family Dividend (BTWFD) scheme provides financial support to Jobseeker, Jobseeker’s Transitional Payment and One-Parent Family Payment recipients in receipt of the Child Support Payment who end their social welfare claim (other than Working Family Payment) and who are in or take up employment.

BTWFD recipients get a weekly payment for up to 2 years equivalent to the full child dependant rate per child up to a maximum of 4 qualified children in year 1 and equivalent to half the child dependant rate per child up to a maximum of 4 qualified children in year 2. For further details the employee should enquire at their local Intreo Centre.

Further information about BTWFD can be found here.

Working Family Payment

Anyone who takes up employment on the Wage Subsidy Scheme who has at least one child under 18 (or aged 18 to 22 in full-time day education) living with them or supported by them, and whose income from employment is low, may qualify for the Working Family Payment (WFP).

They may claim WFP if they are in receipt of One-Parent Family Payment or Widow’s or Surviving Civil Partner’s Pension, but the One-Parent Family Payment or Widow’s or Surviving Civil Partner’s Pension will be assessed as means for the Working Family Payment. They may claim the Working Family Payment if they are in receipt of Disability Allowance or Blind Pension with the earnings disregard, but the Disability Allowance or Blind Pension and any earnings will be assessed as means for WFP.

The employee should enquire with WFP Section whose details are available here.

Part-Time Job Incentive

Anyone who takes up employment on the Wage Subsidy Scheme may participate in the Part-Time Job Incentive (PTJI) if they:

• work 15 hours or more and less than 24 hours a week
• were on long-term Jobseeker’s Allowance for at least 390 days (15 months) before starting work
• were getting a weekly Jobseeker’s Allowance payment of at least €147 if single or if getting an increase for a qualified adult

A person getting PTJI will get a weekly allowance of €147 if single or €239.70 if getting an increase for a qualified adult. No increases are payable for people in receipt of the Child Support Payment.

While getting PTJI, the employee must continue to be available for and looking for full-time work.

PTJI is awarded for one year only but may be extended for up to 12 weeks in exceptional circumstances. The person must continue to look for full-time work while on the scheme.

For further details the employee should enquire at their local Intreo Centre.

Further information about PTJI can be found here.

Work and Access

Work and Access is a set of seven supports to help people with a disability remove or reduce barriers in the workplace. It is available to employees and employers who avail of the Wage Subsidy Scheme.

Jobseekers and employees can apply for:

• a Workplace Needs Assessment, to help identify what supports they might need
• Communication Support, for interviews, job inductions and at work
• In-Work Support, to help people perform in their position
• Personal Reader, to assist people in work
• Work Equipment, to assist people in their job.

Employers can apply for:

• a Workplace Needs Assessment, to help identify what supports their employee might need
• Workplace Adaptation, to accommodate additional employee needs
• Disability Equality and Inclusion Training, to get access to training for staff, to gain a better awareness and understanding of disabilities in the workplace.

Work and Access replaced the Reasonable Accommodation Fund and the Disability Awareness Support Scheme.

Further information can be found on the Work and Access Scheme page

Legal governance

An employer must be fully compliant with current workplace Health and Safety legislation and all other legal requirements. The employer’s Public/Employers’ Liability insurance and Motor insurance, if applicable, should cover any Wage Subsidy Scheme employee on the scheme. All employment supported by the Wage Subsidy Scheme employment must be in accordance with the Code of Practice on Sexual Harassment and Harassment at Work.

Garda vetting and sectoral requirements

The employer has the responsibility to ensure that the appropriate process is applied to placements that require Garda Vetting or other Sectoral Requirements. For example, an employer should ensure that a healthcare professional is registered with the relevant regulatory bodies and has the required qualifications. Employees must agree to comply with requests for Garda Vetting or other Sectoral Requirements where necessary, in accordance with the employer’s policy.

Taxation

The Wage Subsidy Scheme is classified as a grant. It is therefore exempt from corporation tax, as provided for in the following legislation:

• Section 226 of the Taxes Consolidation Act, 1997, (1) (d) & (e) and (2)
• As amended by Section 36 of the Finance Act, 2013, (1) (a) & (b)

The appropriate deductions in terms of income tax, Class A PRSI and USC should be made from the employee’s wages. The employer should also pay the employer’s portion of the Class A PRSI contributions in respect of the employee.

Data protection

The Department of Social Protection administers Ireland's social protection system. The Department requires customers to provide certain personal data in order to determine eligibility for relevant payments and/or benefits. A customer’s personal data may be exchanged with other government departments in certain circumstances where this is provided for by law.

Full details of the department's data protection policy setting out how we will use a customer’s personal data as well as information regarding their rights as a data subject are available here.

Details of this policy are also available in hard copy upon request.

Freedom of Information Act, 2014 (FOI)

The Department of Social Protection undertakes to use its best endeavours to hold confidential any information provided by companies (correspondence/forms/tenders, etc.), subject to the department’s obligations under law, including the Freedom of Information Act, 2014.

Should a company wish that any of the information it supplied not be disclosed because of its sensitivity, the company should, when providing the information, identify the same and specify the reasons for its sensitivity. The Department of Social Protection will consult with the company’s representative about this sensitive information before making a decision on any Freedom of Information request received. However, please note that if no information is identified as sensitive, with supporting reasons, then it can potentially be released in response to a Freedom of Information request.

Complaints

Dealing effectively with our customers’ complaints is one of the Department of Social Protection’s commitments under the Customer Charter which also sets out the standard it should meet in delivering its services.

The Department of Social Protection must, accordingly, ensure that any complaints are examined carefully and resolved with the same quality approach. The department must also try to ensure that errors which give rise to complaints are not repeated. Complaints received by the Department of Social Protection are recorded and reported on annually. This provides a valuable source of information by which service standards overall can be monitored and reviewed.

Learn more about the Customer Charter on gov.ie website here.

Right of review

The Wage Subsidy Scheme is a non-statutory scheme that is not covered under social welfare legislation. It is one of a number of social welfare schemes which are run on an administrative basis. Administrative schemes are not appealable under social welfare legislation. However, if a customer is unhappy with a particular decision they can ask to have their case reviewed by another officer. This review will be carried out by someone not involved in the original decision.

A person who wishes to have a decision reviewed should write to the Employment Services Officer within 21 days of the decision, clearly stating the grounds on which they wish the review to be based, and attaching any evidence they have that supports their case.

The Wage Subsidy Scheme is promoted through the department’s national network of Intreo Centres, and by Employability Job Coaches, who work directly with employees and employers.

All potential Wage Subsidy Scheme participants should engage with their local Employability Job Coach prior to employment on the Wage Subsidy Scheme.

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Learn more about the Employability Service here.

The Wage Subsidy Scheme replaced the Pilot Programme for the Employment of People with Disabilities (PEP) and the Employment Support Scheme (ESS). Both schemes closed to new applicants in September 2005 when the Wage Subsidy Scheme came into operation as a pilot scheme. Clients on PEP were absorbed into the Wage Subsidy Scheme, while ESS continued for those already on ESS.

In general, the Wage Subsidy Scheme guidelines may also be used as a guide for those few people still on ESS. However, ESS continues to use productivity deficit to determine the payment rate.

Under the Disability Act 2005, the term “disability” in relation to a person means “a substantial restriction in the capacity of the person to carry on a profession, business, or occupation in the State or to participate in social or cultural life in the State by reason of an enduring physical, sensory, mental health or intellectual impairment”.

The maximum wage subsidy per year is €12,776.