Pauline Tully
Question:383. Deputy Pauline Tully asked the Minister for Social Protection if she has plans to increase the wage subsidy scheme in line with the minimum wage; and if she will make a statement on the matter. [7924/24]
View answerTuesday, 20 February 2024
Questions (383)
Written answers
The Wage Subsidy Scheme is an employment support to private sector employers, the objective of which is to encourage employment of people with disabilities in the open labour market.
There are currently some 1,504 employers availing of the subsidy in respect of some 2,437 participant employees. Estimated expenditure on the Wage Subsidy Scheme in 2024 is €25 million.To claim a subsidy under the scheme, the private sector employer must offer employment to a person with a disability for at least 21 hours per week and up to 39 hours per week. The contract of employment must be for a minimum of 6 months and the employee should be subject to and have the same conditions of employment as any of the employer's other employees. It should be noted that the subsidy rate contribution under this scheme is not linked to the statutory minimum wage; it is a subsidy provided, subject to certain conditions, to encourage greater employment participation by disabled people.As part of Budget 2022, I increased the rate of the Wage Subsidy Scheme paid to employers, from €5.30 to €6.30 per hour. This gives a total annual subsidy available of €12,776 based on a 39-hour week. Where an employer employs between 3 and 6 employees, a 10% top-up is applied to the hourly rate increasing the payment rate to €6.93 for each employee. In the case of an employer who has more than 23 employees the payment rate is €9.45 per hour for each employee. This is a significant contribution to an employer’s wage costs.My department is currently undertaking a review of the scheme under the Comprehensive Employment Strategy for people with Disabilities. As part of this review, an extensive public consultation was undertaken during June and July 2024, with over 1,000 responses received.
My officials are currently compiling the analysis from the consultation and working on completing the report, which I expect to be finalised over the coming months. In the meantime, in anticipation of recommendations in the review, I have made provision in Budget 2024 to decrease the minimum hours from 21 to 15 hours, which was a key issue raised by stakeholders in the consultation. I expect this change to be operationalised at the start of April this year.
I trust that this clarifies the issue for the Deputy.
Question No. 384 answered with Question No. 364.