Wage Subsidy Scheme for employers of staff with disabilities
Information
The Wage Subsidy Scheme is a scheme that offers financial support for employers who employ certain people with disabilities on a full-time basis (21 hours or more). The scheme is operated by FÁS employment services which were transferred to the Department of Social Protection in January 2012. (Public service employers or any employers or schemes where wages are funded by FÁS are not eligible for this scheme.)
Sometimes the nature of a disability can restrict an employee's productivity in comparison with other staff, irrespective of his or her ability to do a job. In situations where this restriction results in a loss of productivity for the employer, the Wage Subsidy Scheme (WSS) allows the employer make up the shortfall through grant assistance.
It is illegal in Ireland to discriminate against any employee on the basis of disability and this right is set down in legislation (Employment Equality Acts 1998-2011, and the Equal Status Acts 2000-2011).
However, it is permitted to discriminate on the grounds of disability where it can be shown that "there is clear actuarial or other evidence that significantly increased costs would result, if the discrimination were not permitted." For this reason, employers that employ staff with disabilities with proven productivity rates of 50-80% will not lose out if they employ staff with disabilities as the grant aid under this scheme from FÁS will make up any shortfall in reduced productivity.
Employees for whom the employer claims grant assistance under this scheme are subject to the same conditions of employment as all other staff. This means that these employees qualify for PRSI contributions, annual leave, tax deductions, contracts of employment and minimum wage requirements.
Rules
The WSS is divided into 3 strands.
Strand 1 is a wage subsidy payment paid to the employer to make up the shortfall if a disabled employee has a productivity level of between 80% or less (compared to other staff). The employee must work at least 21 hours a week up to a maximum of 39 hours a week. The rate of subsidy is €5.30 a hour based on the hours worked. The maximum annual subsidy is €10,748 based on a 39-hour week.
Strand 2 is a payment to companies that employ more than 2 disabled employees. The "top-up" grant covers supervisory, management and other work-based costs. The top-up grant is based on the overall number of disabled employees from an additional 10% of the wage subsidy for 3 to 6 disabled employees to a maximum of 50% of the wage subsidy for 23+ disabled employees.
Strand 3 is a grant to companies that employ 30 or more disabled employees to enable them to employ an Employment Assistance Officer (EAO). The EAO is employed to support and assist disabled employees with their employment needs. The grant is €30,000 per annum.
Rates
FÁS, the employer and the employee agree the wage subsidy to be paid after the first month of employment. Grant assistance is payable to the employer by cheque or electronic fund transfer on a frequency as agreed with FÁS (normally on a monthly basis). The employer pays the going rate for the job.
How to apply
To apply for funding under the Wage Subsidy Scheme the employer and employee must contact their local FÁS employment services office to arrange a meeting with the FÁS Employment Services Officer and complete the application forms for this scheme. All employers applying for this scheme must be in possession of a current tax clearance certificate.
Employers who are considering employing a person with a disability or are enquiring about other supports for employers of staff with disabilities, should get in touch with their local FÁS office for more information.
If you are someone with a disability who is interested in entering or returning to employment, you should get in touch with your local FÁS employment services office, to find out about supports available in your area.
Further information about employment and disability
is available here and from your local FÁS office.
Language
Related Documents
- Working with a disability
There is a range of supports for people with disabilities to assist them to find and keep employment. - Disability awareness training grants
Grant aid can be provided towards the cost of training employees about disability awareness in the workplace. - Personal Reader Grants for blind and visually impaired
employees
The Personal Reader grant is made available to blind or visually impaired employees that require some extra assistance with reading printed material at work.
Contact Us
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 9pm) or you can visit your local Citizens Information Centre.