March 25th – Covid-19 Updated ‘Employers Wage Subsidy Scheme’
As of yesterday March 25th the Government announced the ‘Covid 19 Income Support Scheme’ which includes new enhanced measures, the ‘Employers Wage Subsidy Scheme’, to support employers with the payment of wages through the current emergency crisis.
The ‘Employers Wage Subsidy Scheme’ provides a temporary wage subsidy of up to 70% of weekly take home pay, will be administered by the Department of Revenue and will replace the initial Emergency Refund Scheme whereby employers could claim €205 per employee.
The scheme aims to:
- Facilitate employers to retain employees on the payroll where there is no work available due to the crisis;
- Increase payments to employees to up to 70% of normal take home pay to a max of €410 per week;
- Reduce the burden on the DEASP who are dealing with other welfare payments;
Key Points of the Scheme include:
- Employers must apply through the Revenue website and self-declare their eligibility;
- To qualify employers must be able to demonstrate at least a 25% drop in turnover;
- Scheme applies to all employees where there is no/less work available and who are kept on the payroll irrespective of whether the employer is topping up this payment or not;
- The Scheme will be in operation for a period of 12 weeks from March 26th;
- Employers are encouraged to make efforts to top up payments to normal wages where possible;
- By retaining employees on payroll, the scheme should alleviate employers concerns re potential redundancy claims after the specified lay-off periods have expired as per the Redundancy Acts;
- Self Employed should apply directly to DEASP for the Unemployment Benefit (now increased to €350 per week) and can claim the wage subsidy through Revenue for their employees;
- The increased Unemployment Benefit of €350 available from DEASP is for employees who have been ‘laid off’ from their employer and are no longer paid through payroll;
For further details on employment related queries and employee entitlements contact People Matters HR Ltd
www.peoplematters.ie; Email: [email protected] or call 087-9361002.