Employment Wage Subsidy Scheme (‘EWSS’)

From the outset of the pandemic, a key objective of the Government response has been to strive to support the retention of jobs and the protection of income for employees. The Temporary Wage Subsidy Scheme (‘TWSS’) was the first instrument to address this issue in the primary phase of the pandemic impact from March to August 2020, to be replaced by the Employment Wage Support Scheme (‘EWSS’) thereafter. Registration for the scheme is still open and is managed via the Revenue On-Line Service (ROS). 

The EWSS provides employers with support for the period from September 2020 to March 2021, as it currently stands. Click here to view our previous guidance on the operation of the EWSS includes details as to Revenue’s formal guidance on the scheme.

In broad terms, the ongoing EWSS is open to any employers who can demonstrate that their business has been significantly disrupted by the pandemic, being at least a 30% decline in either the turnover of their business or in customer orders received during the period from 1 July 2020 to 31 December 2020, when this period is compared to the same period in 2019. The scheme operates by providing a subsidy to the employer for each employee at a fixed weekly rate of either €151.50, €203, €250, €300 or €350 depending on the gross level of the employee’s income. Again click here to view our previous guidance on the EWSS scheme, which gives the various updates.

As noted above, whilst the EWSS is due to end on 31 March 2021, it is broadly acknowledged that a further wage subsidy support scheme is likely to succeed it.  With regard to same, it should be noted that the recent Finance Bill Committee Stage amendments propose that any such scheme after 1 January 2021 will assess eligibility based on the reduction in turnover for the period 1 January to 30 June 2021 when compared to the same period in 2019.

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