The Employment Wage Subsidy Scheme (EWSS) will be extended beyond 31 December 2021 until 30 April 2022, in a graduated form. The Minister confirmed that there would be no change to the operation of the scheme throughout October and November 2021, however changes to the rates of subsidy paid and an end to the reduced rate of employer's PRSI are forthcoming. The tax debt warehousing scheme is extended to facilitate self-assessed taxpayers with a material interest in their employer company to warehouse income tax liabilities relating to their Schedule E income from that employer company.
Employment Wage Subsidy Scheme
The Minister confirmed that the EWSS will be closed to new employers from 1 January 2022. Employers who are availing of the EWSS on 31 December 2021 will continue to be supported under the scheme, subject to eligibility until 30 April 2022.
Rate of subsidy
The rate of weekly subsidy received by the employer per paid eligible employee since October 2020 is as follows:
|
Employee gross weekly wage
|
Subsidy payable
|
|
Less than €151.50
|
Nil
|
|
From €151.50 to €202.99
|
€203
|
|
From €203 to €299.99
|
€250
|
|
From €300 to €399.99
|
€300
|
|
From €400 to €1,462
|
€350
|
|
More than €1,462
|
Nil
|
The Minister confirmed that no changes will be implemented to the EWSS for the months of October and November. Across December 2021, January 2022 and February 2022 the original two-rate structure as set out below will apply:
|
Employee gross weekly wage
|
Subsidy payable
|
|
Less than €151.50
|
Nil
|
|
From €151.50 to €202.99
|
€151.50
|
|
From €203 to €1,462
|
€203
|
|
More than €1,462
|
Nil
|
For March and April 2022, a flat-rate subsidy of €100 will be put in place.
Reduced rate of employer’s PRSI
The current terms of the scheme provide a reduction in employer's PRSI to 0.5% in respect of employees for whom the subsidy is payable. The Minister for Finance confirmed in his speech that reduced rate of PRSI will no longer apply for the final two months of the scheme in March and April 2022.
Cost of EWSS
The estimated cost of extending the EWSS until April 2022 is €1.26 billion, which is to be funded by the Department of Social Protection.
Tax debt warehousing
The tax debt warehousing scheme will be expanded to allow self-assessed income taxpayers who have a material interest in their employer company to warehouse income tax liabilities relating to their Schedule E income from that employer company.
Commercial rates waiver
The commercial rates waiver will continue until 31 December 2021. The waiver of commercial rates was originally introduced as a COVID-19 emergency support measure in March 2020. The extended waiver applies to the hospitality, arts and tourism-related sectors.
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