No changes to Employment Wage Subsidy Scheme for October
Minister for Finance Paschal Donohoe said today that there will be no change to the Employment Wage Subsidy Scheme (EWSS) for October.
Paschal Donohoe said this means the EWSS will continue to operate in its current form during October, so that the main eligibility requirement is a 30% decrease in turnover or customer orders in the full year 2021 compared to the full year 2019.
The enhanced rates of support and the reduced rate of Employers’ PRSI will also continue to apply for October.
The EWSS supported businesses during the Covid-19 crisis as it encouraged employment and helped to maintain the link between employers and employees.
Mr Donohoe said no decisions have yet been taken as to the “appropriate operational parameters” for EWSS for November and December and its possible extension beyond the end of 2021.
He said he is considering a range of possible options for the future of EWSS and such arrangements will be outlined on Budget Day on October 12.
A statement from the Department of Finance said it is Government policy is to avoid a cliff-edge approach to the Covid-19 support schemes.
But it added that as the recovery gains momentum, it will be necessary to give consideration to the recalibration and ultimately the phasing out of the temporary support schemes.
Speaking following today’s Government meeting, the Minister said he was currently considering different options as regards the future of EWSS.
“Pending those decisions, I am pleased to announce that the Government has agreed today that the EWSS will continue in its current form for the month of October which provides clarity and certainty for businesses,” he added.
For the week ending September 24, over €4.8 billion and PRSI credit of almost €770m have been granted to 51,400 employers in respect of 660,400 employees to help them through the Covid-19 crisis.
The extension was welcomed by Childhood Services Ireland (CSI), which it said has been vital in facilitating the successful play pod system across the Early Years sector.
“We are happy to see that the scheme will be extended for October which will give certainty to parents and providers in the coming weeks,” Director of Childhood Services Ireland, Darragh Whelan said.
“The Play Pod system is one that requires extra staffing, and we were very clear that the extra cost that comes with this should not be passed onto parents.”
“Today’s announcement will allow the Early Years sector plan for the eventual phasing out of Government supports in a responsible manner that avoids any cliff-edge.”