Dáil Éireann Debate, Tuesday - 28 September 2021
283. Deputy Alan Dillon asked the Minister for Finance his views on the extension of the employment wage subsidy scheme within the hospitality and tourism sector; and if he will make a statement on the matter. [46101/21]
View answerI am aware of concerns that have been raised regarding the pace of recovery for the hospitality and tourism sector. As an economy wide support, the Employment Wage Subsidy Scheme has the objective of supporting all employment and maintaining the link between the employer and employee insofar as is possible. The EWSS is open to all businesses, provided the business meets the requisite conditions of the scheme. The EWSS provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll and charges a reduced rate of employer PRSI of 0.5% on wages paid which are eligible for the subsidy payment.
The EWSS has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. To date, payments of over €4.8 billion and PRSI credit of almost €770 million have been granted to 51,400 employers in respect of over 660,000 workers.
I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made in June, it has been decided that the scheme is now to be extended until the end of December 2021. For Q3 2021, the Government has decided to broadly maintain the status quo for EWSS, including the enhanced rates of support, with a modification to widen eligibility, and maintaining the reduced rate of Employers’ PRSI of 0.5%.
Further, as announced today, the Government has agreed that there will be no change to the EWSS for the month of October 2021, which means that the scheme will continue to operate in its current form as per the arrangements for Q3 2021. Issues around the configuration of the scheme beyond October are currently being considered and full details will be announced on Budget Day, 12 October 2021.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
