Minister for Finance, Paschal Donohoe, has announced further changes to the wage subsidy scheme that will come into effect from Monday, 4th May 2020.
These changes are as follows:
- For employees earning less than €412 net per week the subsidy will be increased to 85% of their previous net weekly income
- For these employees, it will be permissable under the scheme to top up beyond 100% of previous net wages up to a maximum of €350 without the subsidy being tapered back
- For employees earning between €412 and €500 net per week, the subsidy will be €350 per week
- There are no changes in respect of those whose previous average net pay was between €500 and €586 per week who will continue to receive a subsidy of up to 70% of previous net income, up to a maximum of €410 per week.
- For employees with previous net pay in excess of €586 per week a tiered approach will apply. The maximum subsidy payable for these remains €350 per week.
- The tiered approach takes into account both the amount paid by the employer and the level of reduction in pay borne by that employee as follows:
|Gross Amount paid by Employer
|Up to 60% of employee’s previous average net weekly pay
|Up to €350 per week
|Between 60% and 80% of employee’s previous average net weekly pay
|Up to €205 per week
|Over 80% of employee’s previous average net weekly pay
|No subsidy payable
- the wage subsidy is now available to support employees where the average net pre-Covid salary was greater than €960 per week, and their gross post-Covid salary has fallen below €960 per week. The tiered arrangement outlined above will apply in such circumstances.
It is important to note that these changes will apply for payroll with a pay date on or after the 4 May and received by the Revenue Commissioners on or after that date and that no back-dating of increased subsidy will apply.
For further information please visit the government page here.