ROI Employers Temporary COVID-19 Wage Subsidy Scheme
31 March 2020
On 24th March the Irish Government announced new measures to provide financial support to workers affected by the Covid-19 crisis.
These include a Temporary Wage Subsidy Scheme which enables employees to receive funds directly from their employer through the payroll system. The scheme is expected to last 12 weeks from 26th March 2020.
The Temporary Wage Subsidy Scheme will be available to employers who keep employees on the payroll throughout the COVID-19 pandemic, meaning employers can retain links with employees for when business picks up after the crisis.
Key Features
- Replaces the previous COVID-19 Refund Scheme.
- From 26th March 2020, the subsidy scheme will refund employers up to a maximum of €410 per each qualifying employee. Employers should not pay more than the normal weekly net pay of the employee.
- The subsidy scheme applies both to employers who top up employees’ wages and those that cannot do so.
- Employers make this special support payment to their employees through their normal payroll process.
- Employers will then be reimbursed for amounts paid to employees and notified to Revenue via the payroll process.
- The reimbursement will be made within two working days after receipt of the payroll submission.
- In April, the scheme will move to a subsidy payment based on up to 70% of the normal net weekly pay for each employee to a maximum of €410.
- Income tax and USC will not be applied to the subsidy payment through the payroll.
- Employee PRSI will not apply to the subsidy or any top up payment by the employer.
- Employer’s PRSI will not apply to the subsidy and will be reduced from 11.05% to 0.5% on the top up payment.
Employers should click here for more information on how to qualify, register and operate the Covid-19 Temporary Wage Subsidy Scheme.