Taoiseach Micheál Martin and Minister Dara Calleary launch reformed Wage Subsidy Scheme

• reformed scheme is designed to support more disabled people into employment
• scheme extended to the community and voluntary sector and commercial state-sponsored sector
• reduction in minimum weekly hours threshold from 21 to 15 hours
• employees on Partial Capacity Benefit may now be eligible for the scheme
• reformed scheme embraces social model of disability

Taoiseach Micheál Martin and the Minister for Social Protection Dara Calleary today announced the expansion of the Wage Subsidy Scheme which will help more disabled people to get and retain work.

The Wage Subsidy Scheme encourages employers to hire people with disabilities by providing financial support. This can help cover the cost of adapting a role for the employee. Employers can get a subsidy of between €6.30 to €9.45 per hour, depending on the number of workers employed under the scheme.

Minister for Children, Disability and Equality, Norma Foley and Minister of State with responsibility for Disability, Hildegarde Naughton also addressed the representatives from the disability sector and employer representatives who were in attendance.

Attendees learnt first-hand of the benefits of participating on the scheme from an employer and employee perspective, with personal insights from Deborah Roche, Finance and Operations Manager at RSL and Dr. Jill Carey from Festina Lente Enterprises.

The changes being announced today are a result of the recommendations from a review of the Wage Subsidy Scheme, which was carried out by the department and published in August 2024. Under Budget 2024, an additional €3.7 million was allocated to the scheme to expand and improve it.

The reformed scheme now implements the six recommendations made in the review:

1. Reduce the minimum required hours for the scheme. The minimum hours requirement to avail of the subsidy has been reduced from 21 hours to 15 hours to enable those with more limited work capacity to be included.
2. Remove the term ‘productivity deficit’ from the scheme. The scheme no longer focuses on a productivity deficit but on the need to adapt the role to a disabled person’s ability.
3. Expand the scheme beyond recruitment to include retention of people returning to work. This is particularly important as most disabilities are acquired. People who return to work on Partial Capacity Benefit and who have acquired their disability or health condition in the previous 12 months are now eligible.
4. Expand the scheme to the community and voluntary sector and commercial state-sponsored sector. This will increase employment opportunities for disabled people by expanding the scheme beyond private sector employers to all non-public sector employers.
5. Review the subsidy rate on a regular basis. This will ensure that the subsidy continues to sufficiently support employers. The subsidy rate will be reviewed at least every three years.
6. Promote and improve knowledge of the scheme. The Minister has today launched a nationwide publicity campaign for the Wage Subsidy Scheme to promote and improve knowledge of the scheme.

Speaking at the event, the Taoiseach said:

“Today, I am delighted to launch these improvements to the Wage Subsidy Scheme. Supports like this play not only a critical role in closing the employment gap for people with disabilities, reducing poverty and supporting families and communities, but also for employers in bringing new ideas, skills and knowledge to their businesses.

"I am committed to advancing the rights and improving the lives of people with disabilities including through removing barriers to employment.

"Supports such as this revised Wage Subsidy Scheme recognise that the perspective, talents, and contributions of people with disabilities across society add immeasurably to the quality, the richness and the diversity of all our lives.”

Launching the reformed scheme and the publicity campaign, Minister Calleary said:

“I strongly encourage employers to consider how the Wage Subsidy Scheme can improve their business and offer substantial and sustainable employment to disabled people.

"I believe that the changes made to the Wage Subsidy Scheme will make it more accessible and flexible for both employers and disabled people.

"People with disabilities have the talents and skills that employers need.

"Improving employment prospects for disabled people is an absolute priority for me, the Taoiseach and this government.”

Commenting on the reforms, Minister Foley noted:

“The rate of employment of people with disabilities is far too low in this country. There is so much potential and talent that can be tapped into. I want to thank around 1,500 employers who are already taking part in the Wage Subsidy Scheme. I hope these improvements to the scheme will encourage more employers to become involved and provide real opportunities for people with disabilities to showcase their talents and abilities.”

Acknowledging the importance of the Wage Subsidy Scheme, Minister Naughton said:

“As the Minister with Responsibility for Disability, empowering people to access meaningful employment is a core priority, and I wholeheartedly welcome the changes in the Wage Subsidy Scheme being announced here today. This government has a vision of an Ireland where no one faces exclusion or discrimination in any facet of society, including in the context of employment. I am committed to ensuring that all people with disabilities are supported to live full lives of their own choosing, on an equitable basis with all others in society.”

More information on the Wage Subsidy Scheme is available at: gov.ie/wss.

To qualify for the Wage Subsidy Scheme, employees must be offered a contract of employment of at least six months. The contract must be for at least 15 hours of work per week. An employer can only claim the subsidy for up to 39 hours of work per week. Employees must be aged 18 and over.

The scheme has three subsidy strands.

Strand 1: is a general subsidy of €6.30 per hour.

Strand 2: offers an increase in the subsidy rate up to €9.45 per hour based on the number of employees with a disability on the scheme hired by the company.

Strand 3: is available to employers with 25 or more employees on the scheme. It provides a grant of €30,000 towards the cost of employing an Employment Assistance Officer.

The Wage Subsidy Scheme review report is available here: Report on the Review of the Wage Subsidy Scheme.