COVID-19: Temporary Wage Subsidy Scheme Operational Phase

May 11, 2020

The scheme is now based on each eligible employee’s average net weekly pay for January and February 2020, based on the payroll submissions made to Revenue by the employer.  According to a statement from Revenue, the majority of the revised rates have been applied with the remainder to be implemented shortly. Revenue also stated that they are aware that for some employees where the employer pays between (net weekly) €586 and €960, the full amount of the subsidy due to an employee may not be paid through the payroll run concerned. A system development is expected to ensure that any subsidy amounts that remain due to such employees will be calculated, by Revenue, following the submission of the actual payroll(s). Employers and agents may find answers to their questions on operation of the scheme in the Revenue’s FAQs, now at Version 10

The revised subsidy rates that apply with effect from 4 May 2020 are illustrated in the table below. No backdating of these revised rates prior to 4 May 2020 will apply.

Subsidy Rates with effect from 4 May 2020

Employees earned on average

Subsidy amount

Less than or equal to €412 per week

85% of ARNWP to a maximum of €350 per week

More than €412, and up to €500 per week

Flat rate of up to €350 per week

More than €500 and up to €586 per week

70% of ARNWP, subject to a maximum of €410 per week

More than €586 and up to €960 per week

New tiered arrangement to a maximum of €350 per week

*Tapering or restriction of the subsidy shall apply to all cases, except those where Average Revenue Net Weekly Pay (ARNWP) does not exceed €412 where the additional gross pay paid by the employer and reported on their payroll submission, plus the wage subsidy amount, exceeds the employee’s ARNWP





The Revenue FAQs (version 10) are updated to include guidance on:

  • Refund of subsidy to the employee – as reported above, where the employer pays between €586 and €960 (net weekly), the full amount of the subsidy due to an employee may not be paid through the payroll run concerned. (FAQs 1.2 and 4.17)
  • The treatment under the TWSS where an employee was in receipt of payments from the Department of Employment Affairs and Social Protection (FAQ 4.6)
  • Additional information for employers (FAQ 4.19)
  • Subsidy refunds – view of refunds received and reasons why refunds are not processed (FAQs 5.5 – 5.7.6)

We recommend that members familiarise themselves with the updated FAQs (version 10).