Wage Subsidy Scheme Update 24th April 2020

24th April 2020

EMPLOYER UPDATE

Wage Subsidy Scheme

On the 21st April, Revenue issued some adjustments to the new arrangements that were announced on the 15th April, which we covered in our last Update. We have provided below a summary of these changes.

Excluded Salary

The wage subsidy for those whose pay was in excess of €960 p.w but are now reduced, is now effective from the 16th April 2020 not the 4th May as originally announced. This payment is subject to the tiered arrangements and tapering, as follows;

Where the current gross pay, as reported in the payroll submission, represents a reduction from the ARNWP by:

• less than 20%, no subsidy is payable
• between 20% and 39%, a subsidy of up to €205 is payable
• 40% or more, a subsidy of up to €350 is payable.

The maximum additional payment an employer can make, in order to receive the full subsidy, is the difference between the employees Average Revenue Net Weekly Pay and their maximum weekly wage subsidy.

Eligible Employees 

An employee is not eligible if their gross pay as stated in the payroll submission to revenue exceeds €960 per week. Previously Revenue had referred to this as a Net Pay figure.

Transferred Employees

An employer who has accepted an employee under the TUPE regulations from another employer must notify Revenue of their transfer if they wish to add them to the WSS scheme. a significant negative economic disruption due to Covid-19

Laid off Employees

When an employee is laid off and is in receipt of the Pandemic Unemployment Payment (PUP), they do not have to be terminated by the company.

If an employee who has been placed on lay-off is being returned to work and placed on the Subsidy Scheme, the DEASP will cease the PUP.

Childcare Subsidy Scheme

Details of this new scheme are now available: For more information see

https://www.gov.ie/en/organisation/department-of-children-and-youth-affairs/

Useful links: https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-temporary-covid-wage-subsidy-scheme.pdf

This update is provided by the MSS HR Support Service

Further details on the update or about our services may be obtained from:

John Barry/Tara Daly/ Hugh Hegarty at Tel: 01 8870690

Email: info@mssirl.ie Website: www.mssirl.ie