FAQ's Temporary Wage Subsidy Scheme
FAQ’S - Covid-19 Temporary Wage subsidy scheme
- Do I have to put all my employees on the scheme?
The scheme is intended for employers who will keep all employees on their payroll. It is also the intention that you try to bring back employees who are laid off and enter them onto the scheme.
- Do all employees qualify?
It may be that not all employees qualify to enter the scheme please see the criteria bands below:
Less than €586 per week – 70% subsidy of up to €410 per week
Over €586-€960 per week – Subsidy capped at €350 per week
Over €960 per week - Do not qualify
Calculations are based on average income received in Jan & Feb 2020.
Employees who qualify and avail of the scheme must be kept on the company payroll.
- Can I still use measures to reduce efficiencies in regard to employees whilst on the scheme?
Our advice would be if after a period of time operating within the scheme your business encounters further serious decline financially there are still options open to you.
- If you are topping up employee salaries on the scheme then this could be reduced/stopped with a robust communication plan.
- Lay offs can still be considered but this would be when the business starts to incur very serious financial difficulties and would need very careful consideration before proceeding.
4. Is the scheme open to directors?
If directors are paid through the payroll system and are included in the relevant payroll submissions for an eligible employer, then they are eligible to receive the wage subsidy. The criteria bands explained above would still be apply.