The Minister for Finance, Paschal Donohoe TD, confirmed there would be no cliff-edge ending to the Employment Wage Subsidy Scheme (EWSS). The confirmation came as he sought Dáil approval for an Order extending the enhanced subsidy rates under the scheme until the end of March. Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020, provides that the scheme may be extended until the end of June 2021.

The Order put forward by the Minister for Finance, providing for the extension of the enhanced subsidy rates until 31 March 2021 was approved by the Dáil. In his speech, the Minister noted that:

“It is likely that continued support will be necessary out to the end of 2021 to help maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible”.

Subsequently, the Government announced that the EWSS, the Covid Restriction Support Scheme (CRSS), and the Pandemic Unemployment Payment (PUP) will continue until 30 June 2021. To 25 February, EWSS payments of €2 billion and PRSI credit of €341 million have been granted to 46,800 employers in respect of 526,800 workers. Payments of €323 million under the CRSS have issued, while the TWSS and PUP have cost €3 billion and €6 billion, respectively.

The announcement to extend COVID-19 supports was made as part of the Government’s latest COVID-19 plan, “Covid-19 Resilience and Recovery 2021 The Path Ahead”. The Department of Finance issued a press release which sets out the projected cost of extending the EWSS of €1.32 billion and CRSS at a cost of €240 million.

The guidelines on the operation of the EWSS were updated following the approval of the Order. These updates are highlighted in yellow in the guidelines.