EWSS remains unchanged for October 2021

The Minister for Finance, Paschal Donohoe TD, confirmed last Tuesday that there will be no change to the Employment Wage Subsidy Scheme (EWSS) for the month of October 2021. No decisions have been made on the operational parameters of the EWSS for the remainder of Quarter 4 2021 and beyond. The Minister is said to be considering options on the future of the EWSS which will be outlined on Budget Day.

It was confirmed in a Department of Finance press release that the EWSS will continue to operate in its current form during October 2021, so that the main eligibility requirement is a 30 percent decrease in turnover or customer orders in the full year 2021 compared to the full year 2019. The enhanced rates of support and the reduced rate of employers’ PRSI will continue to apply for the month of October 2021.

No decisions have yet been taken as to the appropriate operational parameters for EWSS for the remainder of Quarter 4 2021 (November and December) and its possible extension beyond end-2021. The Minister is said to be considering a range of possible options for the future of EWSS and such arrangements will be outlined on Budget Day, 12 October 2021.

The Government extended the EWSS as part of the Economic Recovery Plan on 1 June 2021. At that stage it was considered too early to prescribe the precise operational parameters that should apply to the scheme for Quarter 4 2021. At the time the Economic Recovery Plan was published it was noted that the question of an employer contribution to employee wages under the scheme would be considered for Quarter 4 2021.

While Government policy is to avoid a cliff-edge approach to the support schemes, as the recovery gains momentum, it was noted as necessary to give consideration to the recalibration and ultimately the phasing out the temporary support schemes. As such and as signalled previously, the Minister is considering the appropriate calibration of various elements and features of the EWSS.

Further information on the operation of the EWSS from 1 July 2021 is available on the Revenue website.