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Wage Subsidy Scheme

Dáil Éireann Debate, Tuesday - 24 November 2020

Tuesday, 24 November 2020

Questions (271)

Seán Canney

Question:

271. Deputy Seán Canney asked the Minister for Finance if his attention has been drawn to a problem being faced by education and training board part-time tutors seeking to access the temporary wage subsidy scheme (details supplied); his views on whether the current situation is unfair on part-time employees of ETBs; his plans to address the inequality in the scheme; and if he will make a statement on the matter. [37972/20]

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Written answers

The Temporary Wage Subsidy Scheme (TWSS) was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020 and was in place for 22 weeks between 26 March and 31 August. Over 66,500 employers received a subsidy under the TWSS with payments worth just under €2.9 billion paid out to over 664,000 workers.

It was introduced as an emergency income support for employees of vulnerable firms (where turnover had reduced by at least 25% during Q2 while the strictest public health measures were in place) and was paid via the employer so as to maintain employment links between the employee and employer insofar as was possible. The level of income given for each individual employee was based on previous wages received in January and February 2020.

Under the TWSS, in relation to multiple employments, earnings from all active employments were combined thereby ensuring that the overall position of each employee was taken into account when calculating the employee’s subsidy entitlement. This meant that if a person was employed part-time by an ETB and part-time by a private sector employer, the subsidy paid through the private sector employer would reflect that employment only.

Questions relating to an individual employee’s entitlements and rights in an employment context, what wages an employer may be legally obliged to pay employees in respect of their employment contract, hours worked and an employer’s capacity to pay wages to employees in light of the impact of the Covid-19 pandemic are all matters that are outside the remit of the scheme.

Since 1 September, the TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS) which is an employer subsidy to help support viable firms and encourage employment. The level of subsidy given to the employer is based on the number of paid workers on the payroll per week, applying prospectively and, unlike the TWSS, is not determined on the basis of previous pay.

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