Temporary COVID-19 Wage Subsidy Scheme
- Foilsithe: 24 Márta 2020
- An t-eolas is déanaí: 21 Meán Fómhair 2020
This scheme was replaced by the Employment Wage Subsidy Scheme (EWSS) on 1 September. More information is available on the Revenue website.
What the Temporary COVID-19 Wage Subsidy Scheme is
The Temporary COVID-19 Wage Subsidy is a scheme which allow employers to pay their employees during the COVID-19 pandemic.
The employer is expected to make their best efforts to maintain as close to 100% of normal income as possible for the subsidised period.
This payment replaces the Department of Employment Affairs and Social Protection's Employer Refund Scheme announced on 15 March, and any businesses that received refunds under the current scheme do not need to re-apply.
Revenue will contact them directly to confirm that they meet the conditions for this new scheme.
How to qualify
If you are an employer who can show that you have lost at least 25 percent of your trade - you will be able to claim a percentage of your employees net wage back. The government encourages you to top-up your employees' wages to maintain them at their current level of earnings.
This scheme does not apply to people who are self-employed.
If you are self-employed you should apply for the COVID-19 Pandemic Unemployment Payment.
Rate of payment
Until 4 May 2020, the subsidy scheme refunds employers up to €410 per week for each qualifying employee.
From 4 May 2020, payment will move to a system based on the previous net weekly wage for each employee.
| Those employees who earned, on average (ARNWP) | Will receive a subsidy of |
| Less than or equal to €412 per week | 85% of ARNWP to a maximum of 350 per week |
| More than €412, and up to €500 per week | Flat rate of up to 350 per week |
| More than 500 and up 586 per week | 70% of ARNWP, subject to a maximum of €410 per week |
| More than €586 and up to €960 per week | Tiered arrangement to a maximum of €350 per week |
| More than €960 per week | If current gross pay is below €960 per week tiered subsidy arrangements may apply to a maximum of €350 per week |
Tapering or restriction of the subsidy shall apply to all cases, except those where ARNWP does not exceed €412 where the additional gross pay paid by the employer and reported on their payroll submission, plus the wage subsidy amount, exceeds the employee's ARNWP.
Employees previously earning up to €586 net per week
- an 85% subsidy shall be payable in the case of employees whose previous average net weekly pay does not exceed €412, to a max of €350 per week
- a flat rate subsidy of up to €350 shall be payable in the case of employees whose previous average net weekly pay is more than €412 but not more than €500
- a 70% subsidy shall be payable in the case of employees whose previous average net weekly pay is more than €500 but not more than €586, with the maximum cap of €410 applying
Employees previously earning in excess of €586 net per week
- for employees whose average net weekly pay is between €586 and €960 per week, the temporary wage subsidy shall not exceed €350 per week, and shall be calculated with reference to the gross salary paid by the employer and its effect on net average wages as follows:
- a subsidy of €350 shall be payable to employees with average net weekly pay greater than €586, where the employer pays sufficient gross salary which equates to an amount not more than 60% of the Average Revenue Net Weekly Pay (ARNWP)
- a subsidy of €205 shall be payable to employees with average net weekly pay greater than €586, where the employer pays sufficient gross salary which equates to an amount that is:
more than 60% and not more than 80% of the ARNWP
more than 80% of the ARNWP, no subsidy is payable and J9 PRSI class should not be applied
- no subsidy shall be payable to employees with average net weekly pay greater than €586, where the employer pays sufficient gross salary which equates to an amount that is more than 80% of the employee’s net weekly earnings
The new arrangements also mean that the wage subsidy is available to support employees where their pre-COVID salary was greater than €76,000, and their post-COVID salary has fallen below €76,000.
The TWSS is available to support employees whose ARNWP is more than €960, and their current gross pay is below €960 per week.
Where the employee’s current gross pay, as reported in the payroll submission, represents:
- not more than 60% of the ARNWP, a subsidy of up to €350 is applicable
- more than 60% and not more than 80% of the ARNWP, a subsidy of €205 is applicable
- more than 80% of the ARNWP, no subsidy is payable and J9 PRSI class should not be applied
For such employees, the maximum additional gross payment an employer can make, to receive the full subsidy, is the difference between €960 and their maximum weekly wage subsidy.
Apply
Employers should apply on the Revenue website by clicking the button below.