From the 26th March – 31st August 2020, the Government introduced a new Income Support Scheme (known as the Temporary Wage Subsidy Scheme) allowing businesses to keep their employees on the payroll during the COVID-19 pandemic. Employers who qualified for the Temporary Wage Subsidy Scheme did their best to maintain full salaries or as close to full salaries as possible during the scheme.

To be eligible for the scheme employers would provide up to 70% of an employee’s average weekly take home pay up to a maximum of €410. This is non-taxable by the employer. This works out as 70% of an annual salary of €38,000. The scheme would also provide supports on salaries up to €76,000 and the support would be capped at €350 per week for salaries between €38,000 and €76,000.

 

The changes applicable from the 4th May 2020 were:

  • The subsidy would increase from 70% to 85% for employees with a previous average take home pay below €412 per week
  • The subsidy would be a flat rate of €350 per week for employees with a previous average take home pay between €412 and €500 per week
  • The subsidy remained the same of up to 70% capped at €410, for employees with a previous take home pay of between €500 and €586 per week
  • A tiered system was introduced for employees with a previous take home pay of over €586 per week and less than €960 per week.

The Temporary Wage Subsidy Scheme ceased at the end of August 2020.

Week 1 basis was applied for all employees in receipt of the Wage Subsidy Scheme.

To find out more and to answer many of your questions we have put together an 8-page Factsheet covering registration, eligibility, deductions, refunds and much more. To download your copy just click on the button

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