Factsheet for case IE-2020-36/1157 – Updated – measures in Ireland
|Country||Ireland , applies nationwide|
|Time period||Temporary, 01 September 2020 – 31 December 2021|
|Type||Legislations or other statutory regulations|
Employment protection and retention
– Income support for people in employment (e.g. short-time work)
|Author||Roisin Farelly (IRN Publishing) and Eurofound|
|Case created||18 September 2020 (updated 23 July 2021)|
The scheme is aimed at replacing the Temporary Wage Subsidy Scheme (TWSS), which has been in place since March 2020. It is a lower level of subsidy than under the TWSS and is seen as more fiscally sustainable for the seven-month period it is planned to be in existence. Read more about the TWSS in the COVID-19 PolicyWatch database .
The scheme provides flat rate subsidies to businesses who have lost more than 30% of turnover or customer orders due to COVID-19.
These subsidies are as follows:
Although the scheme began on 1 September 1 2020, payments can be claimed retrospectively for July and August 2020.
Exceptions include family members not on the payroll in the 12 months before 1 July 1 2020, some proprietary directors (those not on the employer's payroll); domestic employees.
Registered childcare providers are exempt from the 30% turnover loss requirement.
The scheme is administered by the Revenue (tax collection agency) on a self-assessment basis, with compliance checks to come later. Those in the schemes are to review their continued eligibility at the end of each month and de-register if they are no longer eligible. A list of employers benefitting is to be made public. Tax clearance certificates from Revenue are required to participate in the scheme. The usual pay-as-you-earn (PAYE) tax collection system operates for wages covered by the scheme (its predecessor TWSS scheme had a different system). Wages covered by the subsidy have a reduced employer social insurance payment of 0.5%.
According to figures from the Revenue: The employment wage subsidy scheme paid €1.42 billion to 39,800 employers in respect of 443,100 employees between September 2020 and end of December 2020.
According to figures released by Revenue, as of 18 February 2021: 48,600 employers were registered with Revenue for EWSS. In total, €1.99 billion was paid up 18 February 2021 under the scheme and 526,800 employees were paid from the scheme.
Employees in standard employment
||Applies to all businesses||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
It is likely that they were informed of the measures, as was the case under the previous Temporary Wage Subsidy Scheme that applied from March to August 2020, but there was no formal role.
Both sides welcome the continuation of some form of wage subsidy, although it provides less subsidy that the previous scheme.
Eurofound (2020), New wage subsidy scheme (EWSS) is less generous, but fiscally more sustainable, case IE-2020-36/1157 (measures in Ireland), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.