Employment Wage Subsidy Scheme

Introduction

Under the July Jobs Stimulus Package a new Employment Wage Subsidy Scheme (EWSS) will replace the Temporary Wage Subsidy Scheme (TWSS) from September 2020. It will run until 31 March 2021.

Under the EWSS scheme, employers and new firms in sectors impacted by COVID-19 whose turnover has fallen 30% will get a flat-rate subsidy per week based on the number of qualifying employees on the payroll, including seasonal staff and new employees.

The TWSS will finish on 31 August 2020.

The Financial Provisions (Covid-19) (No. 2) Bill 2020 and Explanatory Memorandum set out some of the new provisions for this scheme. You can also get information on Revenue’s July jobs stimulus 2020 summary of taxation measures (pdf).

This document will be updated when more information becomes available.

Rules for EWSS

To qualify for the scheme, you must self-declare to Revenue that you have experienced significant negative economic disruption due to COVID-19, with a minimum of 30% decline in turnover or customer orders (between July to December 2020 compared with the same period in 2019). For new businesses, this is based on a projected forward test.

If you are a registered childcare provider, you do not need to meet the 30% reduction in turnover or customer orders test.

If you have a new employee (new hire or a seasonal worker), they can start the EWSS from 1 July 2020.

If an employee is already on the TWSS, they must stay on it until 31 August 2020. The TWSS ends on 31 August 2020 and no new applications for the TWSS can be accepted from that date.

The two schemes will run in parallel from 1 July until the TWSS closes at the end of August.

Rates

The subsidy amount paid to employers will depend on the gross income of each employee.

EWSS will give a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll.

  • For every employee paid between €203 and €1,462 gross per week, the subsidy is €203.
  • For every employee paid between €151.50 and €202.99 gross per week, the subsidy is €151.50.

No subsidy is paid for employees paid less than €151.50 or more than €1,462 gross per week.

Proprietary directors are being reinstated to the EWSS from 1 September, where they keep ‘ordinary’ employees on the payroll.

If an employment is eligible for the subsidy, a 0.5% rate of employer’s PRSI will apply.

How to apply

Employers will need to register online with Revenue.

Further information

This document will be updated once more information becomes available or you can check Revenue’s website for updates.

Page edited: 28 July 2020