Wage Subsidy Scheme

The Wage Subsidy Scheme (WSS) helps employers to hire disabled staff. It does this by giving employers financial support to employ disabled people through a subsidy.

The job must be for at least 15 hours of work each week. Employers can claim the subsidy for up to 39 hours per week. The subsidy rate is between €7.50 and €10 per hour. The rate depends on how many employees the employer hires under the scheme.

To get the wage subsidy, the employee must have a limited ability to work due to their disability or health condition that requires the job’s tasks or role to be significantly adapted.

If an employee with a disability has a limited ability to work due to their disability or health condition, an employer can get the wage subsidy to help cover the costs of significantly adapting the job’s tasks or role.

An employee on the scheme must have the same conditions of employment as other employees.

Employers

An employer can qualify for the Wage Subsidy Scheme, if they:

• are a non-public sector employer
• are tax compliant
• employ at least one disabled person for 15 to 39 hours a week.

An employer can offer more than 39 hours of work a week, but they can only claim the subsidy for up to 39 hours.

Employment conditions

If an employer applies for the subsidy, the employee must have the same rights and conditions of employment as other staff. This includes:

• pay-related social insurance (PRSI) contributions
• tax deductions
• annual leave and other leave entitlements
• paying the employee the going rate for the job. This must be at least the statutory minimum wage.

Third parties

Only the employer who hires the employee can claim the subsidy. Employment agencies, contractors, or other agencies cannot claim the subsidy.

Employees

An employee can qualify for the Wage Subsidy Scheme if they:

• are aged 18 and over, up to pensionable age
• have a disability or health condition that reduces their ability to work and, as a result, the job’s tasks or role must need to be significantly adapted
• have a contract of at least 6 months
• work at least 15 hours per week in that employment
• are a new employee or an existing employee who has worked in the job for less than 12 months
• are taking up or returning to work on Partial Capacity Benefit if they have acquired a disability or health condition in the last 12 months
• are an existing employee and have acquired a disability within the last 12 months which reduces their ability to work
• are an existing employee and have a degenerative or progressive condition whose ability to work has reduced in the last 12 months to the extent that the job’s tasks or role has had to be significantly adapted by the employer
• have been in receipt of Invalidity Pension for any duration and who transfer to Partial Capacity Benefit

Proof of disability

If employee is getting one of the following social welfare payments, no further medical assessment is required:

• Blind Pension
• Disability Allowance
• Disablement Benefit (awarded at 20% or more for life)
• Partial Capacity Benefit

People getting Illness Benefit or Invalidity Pension can ask to move to Partial Capacity Benefit to take up work.

The employee does not need to receive a disability payment to qualify for the Wage Subsidy Scheme. Their disability or health condition must be confirmed by a recent specialist’s report or doctor’s letter, if they do not receive one of the listed payments. The employee’s doctor or specialist must also fill out the Confidential Medical and Functional Capacity Report.

The subsidy rate depends on how many employees the employer hires through the scheme.

Strand 1:

The base subsidy rate is €7.50 per hour. This is paid to employers with 6 employees on the scheme.

Strand 2:

Employers can get an automatic increase in the subsidy payment rate if they hire more employees on the Wage Subsidy Scheme. This table shows the subsidy rate by number of employees:

Strand 3:

An employer who hires 25 or more employees through the scheme can apply for receive a grant of €30,000 towards the cost of employing an Employment Assistance Officer (EAO).

A company can hire up to 5 EAOs.

To apply for the Wage Subsidy Scheme:

• complete the employer application (WSS1ER) and an Electronic Funds Transfer (EFT) bank mandate
• ask the employee to complete the employee application form (WSS1ER) and meet an Employment Services Officer from the department to register on the Wage Subsidy Scheme system
• agree with the employer and the employee that the job’s tasks or role must be significantly adapted due to their disability or health condition and complete the Work Adaptation Report Form (WSS2)
• have up-to-date tax clearance and provide a tax clearance access number. This is checked with Revenue before payment issues.
• provide a signed contract of employment. This must detail the terms and conditions of employment, including gross wage, job description (and person specification if available), annual leave, sick leave, and maternity/paternity leave entitlements. The contract must be for at least 6 months

If the application is approved, the department will write to both employer and the employee to confirm the terms of approval.

Welfare Partners is the department’s digital service for business partners. The following WSS services are available on Welfare Partners:

• submit Wage Subsidy Requests (WSRs) for funding
• review WSRs submitted and associated payments
• review scheme claim and participant details

You can find more information on how to submit wage subsidy requests on Welfare Partners.

To find out more, you can contact the Workplace Supports Staff in your local area.

Operational guidelines describe the processes and procedures that staff in the department follow when carrying out their work.

Operational Guidelines: Wage Subsidy Scheme