Paul Kehoe
Question:79. Deputy Paul Kehoe asked the Minister for Social Protection the impact of the increase in the wage subsidy scheme for people with disabilities; and if she will make a statement on the matter. [14573/22]
View answerTuesday, 22 March 2022
Questions (79)
Written answers
The Wage Subsidy Scheme (WSS) aims to encourage private sector employers to employ people with disabilities and thereby increase the numbers of people with disabilities participating in the open labour market. The scheme provides financial incentives to private sector employers to hire people with a disability for between 21 and 39 subsidised hours per week under a contract of employment.
As part of Budget 2022, I increased the basic rate of subsidy by €1 to €6.30 per hour giving a total annual subsidy available of €12,776 per annum based on a 39-hour week. Strand II subsidy is payable when an employer employs three or more people with disabilities who are supported by a Wage Subsidy Scheme Strand I payment. It ranges from an additional 10% of wage subsidy for 3 to 6 employees with a disability to a maximum of 50% of wage subsidy for 23+ employees with a
disability. Therefore an employer with 3 to 6 employees, gets a 10% top-up applied to the hourly rate bringing it to €6.93 and rising to €9.45 per hour where an employer has more than 23 employees.
The WSS is a demand-led scheme and participation was negatively affected by Covid-19. Currently there are 1,506 employers availing of the subsidy in respect of some 2,376 employees. It is notable that 62 new employees have taken up employment under the scheme since January.
As the new subsidy rate only came into effect on 3 January as restrictions were being lifted, it is too early to assess this measure’s long-term impact at this time. However, I believe that the increased rate paid to employers will encourage more mainstream employers to employ or increase the numbers of people with a disability in their work force. Most employers will agree that the new rate is a substantial contribution to the employer’s wage costs and this measure has immediately benefitted all current employers on the scheme.
I trust this clarifies the matter for the Deputy.