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Wage Subsidy Scheme

Dáil Éireann Debate, Tuesday - 9 June 2020

Tuesday, 9 June 2020

Questions (54, 59, 67, 78)

Michael McGrath

Question:

54. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 120 of 20 May 2020, the status of the issue regarding women returning from maternity leave being excluded from the temporary wage subsidy scheme; if the matter requires primary legislation in order to be rectified; and if he will make a statement on the matter. [9788/20]

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Danny Healy-Rae

Question:

59. Deputy Danny Healy-Rae asked the Minister for Finance his plans to ensure that the necessary changes are made to the temporary wage subsidy scheme to ensure that women that have been on maternity leave can avail of the scheme; and if he will make a statement on the matter. [9910/20]

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Mary Lou McDonald

Question:

67. Deputy Mary Lou McDonald asked the Minister for Finance when the change to the temporary wage subsidy scheme will come into effect to accommodate the salaries of those that have returned to work after a period of maternity or adoptive leave and that may not have been on the payroll of their employer on 29 February 2020 or paid in either January or February 2020. [10245/20]

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Michael McGrath

Question:

78. Deputy Michael McGrath asked the Minister for Finance when the fix to the temporary wage subsidy scheme enabling mothers on maternity leave to apply to the scheme will be operational; and if he will make a statement on the matter. [10322/20]

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Written answers

I propose to take Questions Nos. 54, 59, 67 and 78 together.

The Temporary Wage Subsidy Scheme (TWSS) is one of a number of significant measures that have been introduced since the beginning of March to attempt to minimise the negative impact on the labour market through an exceptional period, where at least one million workers are now relying on some form of State support.

The aim of the scheme is to maximise staff retention and firm viability by maintaining the link between the employer and employee. As of 8 June 2020, over 59,000 employers have registered with Revenue for the TWSS, over 520,900 employees have received at least one payment under the scheme and the cumulative value of payments made to employers is €1.43 billion.

On 29 May, I announced an important change to the TWSS to deal with the issue of those returning from maternity or adoptive leave which was raised by various parties and interest groups.

Officials had been looking at how it might be possible to address the issue in a way that ensures consistent treatment with other employees who were on the payroll in January and February, whose salaries were taken into account in determining TWSS payments for employers.

Following Government approval, a change to the TWSS will be made as an exceptional measure to accommodate the salaries of those who have returned to work after a period of maternity or adoptive leave who consequentially were not on the payroll during the relevant period.

The amendment will be legislated for later in the year as part of the usual Finance Bill 2020 process but in the interim, Revenue has agreed that this provision will be operational from 12 June and that the subsidy will be backdated, where applicable, to the later of either the date of recommencement of employment or 26 March 2020.

I am satisfied that this change addresses the matter raised and ensures appropriate operation of the TWSS in recognition of the unique circumstances applying to those returning to work after a period of maternity or adoptive leave by allowing for commensurate treatment with other employees who were on the payroll on 29 February.

Further details of how the measure will operate have now been published by Revenue, and I would highlight that the manual process being adopted will require input from employers so I would encourage them to contact Revenue to allow for payments to be processed as quickly as possible.

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