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 1,515 employers on the scheme in respect of some 2,436 participant employees. Estimated expenditure on the wage subsidy scheme in 2023 is €24 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 six 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, we increased the rate of the wage subsidy scheme paid to employers from €5.30 to €6.30 per hour. This gives a potential total annual subsidy of €12,776 based on a 39-hour week. The 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 exercise was undertaken. Officials are currently compiling the analysis from the consultation and working on completing the report, which we expect to be finalised over the coming months. In the meantime, in anticipation of recommendations in the review, we have made provision in budget 2024 to decrease the minimum hours from 21 to 15, which was a key issue raised by stakeholders in the consultation. I expect this change to be operationalised in the first half of next year.