The Temporary Wage Subsidy Scheme is to be wound up at the end of August.
The scheme is to be replaced by a new flat-rate subsidy that will offer struggling businesses €203 per worker.
It means that companies who were receiving subsidies of up to €410 per week for their employees will now have to make up the shortfall.
The changes were announced as part of the multi-billion Euro July Stimulus Package.
On The Hard Shoulder this evening, the Social Protection Minister Heather Humphreys said the new Employment Wage Support Scheme will run until next April.
“Crucially that scheme will be open to new hires which wasn’t the case under the Temporary Wage Subsidy Scheme (TWSS),” she said.
“You had to be with that company at the time to qualify for TWSS. Now if they take on new employees, they can get the new subsidy.”
Wage subsidy
She said the average subsidy paid under the old scheme was between €240 and €250 per employee.
“As you know the economy is reopening and we wanted to see how we could keep this going for longer,” she said. “That is why we are changing it.
“We are moving to a flat-rate model. It is available for new employees; it is available to new businesses and it is also available to seasonal workers.”
She said companies will have to prove their turnover has fallen by at least 30% due to the outbreak to access the scheme.
Pandemic Unemployment Payment
The new package also includes an extension of the Pandemic Unemployment Payment; however, payments are to be gradually reduced.
Minister Humphreys said the reductions will begin on September 17th.
“There will now be three bands,” she said. “If you previously earned less than €200, you will receive a payment of €203.
“If you previously earned between €200 and €300 you will receive a payment of €250 and anybody’s earnings pre-COVID were over €300 will receive a payment of €300.”
The payments will be reduced again on Feb 1st with people who were receiving €300 dropping to €250 and people on €250 dropping to the standard Jobseekers payment of €203.
Anyone still on the scheme by April 1st will have to apply for Jobseekers Allowance.
“What I want to do is relate the payment to your income prior to COVID which I believe is fairer,” said Minister Humphreys.
“I want to make sure that the payment is as fair as possible and at the same time, I didn’t want anybody suffering any form of cliff-edge reduction. I believe that by extending the scheme until April we have achieved that goal.”
You can listen back to the full interview here:
