Dáil Éireann Debate, Tuesday - 5 October 2021
156. Deputy Richard Bruton asked the Minister for Finance the current payment rates for the employment wage subsidy which are in payment at different pay levels; the conditions which must be met by an employer to remain in payment; and if further phased withdrawal is planned as the economy reopens. [47523/21]
View answerSection 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Employment Wage Subsidy Scheme (EWSS) which is an economy-wide enterprise support for eligible businesses. EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. To date, €4.9bn has been paid out under the scheme to 51,500 employers in respect of 664,700 employees and Employers’ PRSI of €784m has been foregone.
For every qualifying employee paid a weekly gross amount between:
- €151.50 and €202.99, the subsidy is €203,
- €203 and €299.99, the subsidy is €250,
- €300 and €399.99, the subsidy is €300, or
- €400 and €1,462, the subsidy is €350.
No subsidy is available for employees paid a weekly gross amount less than €151.50 or more than €1,462. The scheme also provides for a reduced rate of Employers’ PRSI.
The Finance (Covid-19 and Miscellaneous Provisions) Act 2021, signed into law on 19 July, provided for the extension of EWSS to 31 December 2021, ensuring that the scheme continues to provide ongoing and necessary employment support for eligible businesses as the economy returns to a full re-opening. The legislation also provided that for employers to be eligible for the EWSS, they must be able to demonstrate that their business will experience a 30% reduction in turnover or customer orders for the calendar year 2021 compared to the calendar year 2019 and that this disruption to normal business is caused by the COVID-19 pandemic.
The EWSS legislation requires that immediately at the end of each month, from the introduction of the scheme in August 2020 onwards, each employer availing of the scheme must carry out a self-review of its business circumstances and if it is manifest to the employer that it no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments.
To assist employers in conducting a monthly review of its continuing eligibility for the scheme, Revenue is providing an EWSS Eligibility Review Form through its Revenue Online Service (ROS). From 21 July 2021, completing and submitting an EWSS Eligibility Review Form to Revenue is necessary to avail of EWSS supports, with details of an employer’s monthly eligibility review check to be submitted by the 15th of the following month. For example, the eligibility review undertaken on the last day of September will need to be completed and submitted to Revenue by 15 October.
In addition, employers must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance for the duration of the scheme.
I have been clear that there will be no cliff-edge to the EWSS. As I outlined in my recent announcement on 28 September, the Government has agreed that there will be no change to the EWSS for the month of October 2021, which means that it 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.
