The Government has announced new measures this week to help businesses and employees who are struggling financially during the Covid-19 emergency. The new measures provide a comprehensive range of supports for businesses who are in a position to retain employees but also for employees who have been laid off as a result of the crisis. The measures introduced (as of the 26th of March 2020) include a Temporary Wage Subsidy Scheme for employers and a social welfare payment known as the ‘Covid-19 Pandemic Unemployment Payment’ for employees who have been laid off.
- Temporary Wage Subsidy Scheme:
The Temporary Wage Subsidy Scheme aims to ensure that employers maintain links with their employees which will make it easier for businesses to return to a normal working environment after the crisis. Employers are encouraged to avail of the scheme and retain employees on their books during the crisis.
The scheme will operate from Thursday 26th March 2020 and Revenue will refund employers up to €410 for qualifying employees from this date. Refunds to employers are expected within 2 working days after the payroll submission.
From April, the subsidy will be adjusted to provide a subsidy of 70% of an employee’s weekly wage up to a maximum of €410 for employees earning under €38,000. For employees earning between €38,000 and €76,000 the maximum subsidy will be €350. The scheme will not apply in respect of employees earning over €76,000.
To qualify for the scheme employers must experience significant negative economic disruption to their business due to Covid-19. In particular, employers must demonstrate to Revenue that their business has suffered a minimum of a 25% decline in turnover and that they are unable to pay normal wages and outgoings.
The scheme will automatically replace the Covid-19 Refund Scheme which many employers have already signed up to.
Employers can register for the scheme through ‘MyEnquiries’ on the ROS website.
- Covid-19 Pandemic Unemployment Payment:
The Covid-19 Pandemic Unemployment payment is a social welfare payment available to employees who have been laid off work as their employer was unable to retain them due to the Covid-19 crisis.
This new social welfare payment of €350 is available to all employees, self-employed, students and part-time workers aged between 18 and 66, who have lost their jobs or stopped trading as a result of the pandemic.
The original rate of payment was €203 however all recipients will automatically receive the increased rate of €350. The increased rate will also be backdated to the date of the employee’s application.
The easiest way for employees to apply is online at www.MyWelfare.ie or by sending an application form by post.
These two new support measures provide much needed assistance to struggling businesses and employees during these difficult times.
We at J.W. O’Donovan are monitoring the situation very closely and are available to answer any queries that any businesses owners or employees may have at this time. We strongly advise that a constant review of the Revenue guidelines be undertaken as the applicable rules are frequently changing. If you would like more information on any of the above please contact email@example.com.
Date of Publication: 26th March 2020