Since the onset of the Covid-19 pandemic, the Government introduced a number of measures to assist employers whose businesses were significantly disrupted by the onset of the Covid-19 pandemic. One of the main measures was the temporary wage subsidy scheme operated by the Revenue Commissioners.
The legislation underpinning the temporary wage subsidy scheme requires employers, for the purposes of their PAYE obligations, to record a J9 PRSI class for each employee in respect of whom a subsidy is being claimed. The subsidy paid in respect of specified employees to qualifying employers under the temporary wage subsidy scheme is not subject to any contribution charge. Employers are required to pay a nominal contribution charge on any wages paid to their employees in addition to the wage subsidy. This contribution covers employees for occupational injuries benefits only and not to a range of other social insurance benefits.
In the exceptional circumstances of the Covid-19 pandemic, it is the intention of the Government to ensure that former employees entitled to receive the pandemic unemployment payment or employees in respect of whom a temporary wage subsidy is claimed by their employers, do not have their social insurance contribution records interrupted or otherwise adversely affected.
To this end, I am bringing legislation to the Houses of the Oireachtas this week by means of the Social Welfare (Covid-19) (Amendment) Bill 2020. This Bill contains provisions for the attribution of contributions for a specified number of weeks to people whose salaries were supported by the temporary wage subsidy scheme as well as people entitled to the pandemic unemployment payment. These attributed contributions will have the same value, as far as accessing the range of social insurance benefits is concerned, as the contribution last paid by the people concerned before becoming a participant on the subsidy scheme or being laid off work due to the pandemic.
These legislative provisions are important to protect the future benefit entitlements of the insured persons concerned, to both long-term benefits such as contributory State pensions and short term benefits such as maternity benefit.
I trust this clarifies the matter for the Deputy.
