The temporary salary subsidy scheme of 2,700 million euros ends



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The temporary wage subsidy scheme (TWSS) that has supported businesses affected by Covid-19 restrictions since March closes on Monday and will be replaced by the new labor wage subsidy scheme (EWSS).

More than € 2.7 billion have been delivered to 69,500 employers through TWSS, covering more than 600,000 workers. The new EWSS will operate until the end of March 2021 and is expected to cost € 2.25 billion – € 1.35 billion in 2020 and € 0.9 billion in 2021.

Finance Minister Paschal Donohoe said the EWSS has been designed with the needs of employers and businesses in mind.

However, the scheme has been criticized by Sinn Féin finance spokesman Pearse Doherty, who said there is a risk of permanent job losses in the coming months.

Under EWSS, for each employee paid more than € 203 gross per week, the subsidy level is € 203, and for each employee paid between € 151.50 and € 202.99, the subsidy is € 151.50. No subsidy is paid to employees who pay less than € 151.50 or more than € 1,462 gross per week.

A rate of 0.5% of the employer PRSI will continue to apply for jobs that are eligible for the subsidy.

“Under the EWSS, employees with a gross weekly wage of less than € 152 per week will not be eligible for any subsidy,” said Mr. Doherty.

“These workers are now excluded from the new scheme, with potentially dire consequences for their jobs, their income and their families.

“This government runs the risk of causing a labor crisis in the coming weeks and months through its actions.”

The EWSS is the centerpiece of the government’s employment stimulus in July. Mr. Donohoe encouraged employers and businesses who believe they will continue to experience a significant decrease in their turnover or customer orders as a result of the pandemic to take advantage of it.

“The EWSS aims to provide employers and businesses with a high degree of certainty that this Government will continue to support them during the upcoming period of uncertainty for the economy and will put them in a position to retain key personnel and ensure the viability so that they are in a strong position as the economy recovers, ”said Mr. Donohoe.

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