Dáil Éireann Debate, Wednesday - 13 May 2020
102. Deputy Pearse Doherty asked the Minister for Finance the measures he has or will take to ensure that those who had net weekly pay of less than €500 before the introduction of the temporary wage subsidy scheme do not receive less than €350 per week if their employer has applied for the temporary wage subsidy scheme; if a minimum weekly payment of €350 per week to the scheme will be introduced; and if he will make a statement on the matter. [5291/20]
Amharc ar fhreagraThe legislation underpinning the Temporary Wage Subsidy Scheme (TWSS) is contained in Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020.
This makes provision for the Minister for Finance to determine the amount of the temporary wage subsidy, with the consent of the Minister for Employment Affairs and Social Protection, given with the concurrence of the Minister for Public Expenditure and Reform, and different amounts of temporary wage subsidies may be so determined in relation to different classes of employee. As the Deputy will be aware, on 15 April 2020, I, as Minister for Finance, announced further updates to the TWSS.
Included in the updates were measures to increase the wage subsidy for certain lower paid employees. In effect, for those employees with previous net pay of less than €586 per week, the amount of the temporary wage subsidy shall not exceed €410 per week in accordance with the following principles:
- an 85% subsidy shall be payable in the case of employees whose average net weekly pay does not exceed €412; and
- a flat rate subsidy of up to €350 shall be payable in the case of employees whose average net weekly pay is more than €412 but not more than €500.
In addition, where an employer wishes to pay a greater level of top-up, in respect of employees with net pay of less than €412 per week, in order to bring the employee’s pay to €350 per week, then tapering would not be applied to the subsidy.
These changes to the TWSS mean that more employees will now receive a subsidy of €350 per week, and those with previous net pay below €412 per week will now receive a greater level of subsidy.
These new rates have been fully operational for payroll submissions made on or after 4 May 2020, with a pay date on or after that same date.
The changes announced allow the concentration of resources to protect incomes, in a proportionate way having regard to available resources, employer contribution and the broader suite of COVID-19 related supports put in place by the Government.
