A new Employment Wage Support Scheme (EWSS) has been included in the Government’s July Jobs Stimulus Package. The EWSS will run in parallel to the Temporary Wage Subsidy Scheme (TWSS) from 31 July. The EWSS is set to succeed the TWSS from 1 September and continue to the end of March 2021. While the concepts behind the two schemes align, there are a number of differences between them.
The EWSS will require employers to reassess their eligibility for wage support. Employers who can demonstrate to the satisfaction of Revenue that turnover or customer orders are estimated to have fallen by 30 per cent for the period July to December 2020, compared to the same period last year, will be eligible for the EWSS. While eligibility for the TWSS has been assessed on a 25 per cent reduction in quarter two turnover or customer orders.
Under the EWSS employers will receive a flat-rate subsidy of up to €203 or €151.50 per employee, per week, depending on the employee’s gross weekly pay. A subsidy will not be available for employee’s whose gross weekly earnings are less than €151.50 or greater than €1,462. The TWSS provides for a maximum subsidy amount of €410 depending on an employee’s ARNWP.
Under the EWSS a subsidy will be available for new and seasonal employees, in addition to existing employees. The EWSS is also open to newly commenced businesses. The eligibility criteria for new businesses will be assessed against projected turnover or customer orders had there been no COVID-19 disruption. The EWSS is available to employer’s registered under Section 58C of the Child Care Act 1991.
The EWSS is expected to support 350,000 jobs at an estimated cost of €1.9 billion. Over €2 billion has been paid out through the TWSS as of mid-July. An estimated 415,000 employees continue to be supported by the TWSS.
Chartered Accountants Ireland will host a wage subsidy scheme webinar with Revenue on 26 August. The webinar will be open for registration through the webinar webpage shortly.