The Temporary COVID-19 Wage Subsidy is a scheme which allow employers to pay their employees during the current pandemic.
The employer is expected to make their best efforts to maintain as close to 100% of normal income as possible for the subsidised period.
This payment replaces the Department of Employment Affairs and Social Protection's Employer Refund Scheme announced on 15th March, and any business that received refunds under the current scheme do not need to reapply.
Revenue will contact them directly to confirm that they meet the conditions for this new scheme.
How to qualify
If you are an employer who can show that you have lost at least 25 percent of your trade - you will be able to claim a percentage of your employees net wage back. The government encourages you to top-up your employees' wages to maintain them at their current level of earnings.
This scheme does not apply to people who are self-employed.
Until 4 May 2020, the subsidy scheme refunds employers up to €410 per week for each qualifying employee.
From 4 May 2020, payment will move to a system based on the previous net weekly wage for each employee.
Employees previously earning up to €586 net per week
an 85% subsidy shall be payable in the case of employees whose previous average net weekly pay does not exceed €412
a flat rate subsidy of up to €350 shall be payable in the case of employees whose previous average net weekly pay is more than €412 but not more than €500
a 70% subsidy shall be payable in the case of employees whose previous average net weekly pay is more than €500 but not more than €586, with the maximum cap of €410 applying
Employees previously earning in excess of €586 net per week
for employees whose average net weekly pay is between €586 and €960 per week, the temporary wage subsidy shall not exceed €350 per week, and shall be calculated with reference to the gross salary paid by the employer and its effect on net average wages as follows:
a subsidy of €350 shall be payable to employees with average net weekly pay greater than €586, where the employer pays sufficient gross salary which equates to an amount not more than 60% of the Average Revenue Net Weekly Pay (ARNWP)
a subsidy of €205 shall be payable to employees with average net weekly pay greater than €586, where the employer pays sufficient gross salary which equates to an amount that is:
more than 60% and not more than 80% of the ARNWP
more than 80% of the ARNWP, no subsidy is payable and J9 PRSI class should not be applied
no subsidy shall be payable to employees with average net weekly pay greater than €586, where the employer pays sufficient gross salary which equates to an amount that is more than 80% of the employee’s net weekly earnings.
The new arrangements also mean that the wage subsidy is available to support employees where their pre-Covid salary was greater than €76,000, and their post-Covid salary has fallen below €76,000.
Employers should apply on the Revenue site by clicking the button below