The government recently announced a number of changes to the COVID-19 employment income supports, as well as introducing new supports that will run to 2021.
Employment Wage Subsidy Scheme to replace Temporary Wage Subsidy Scheme
The Temporary Wage Subsidy Scheme (TWSS) will expire on 31 August 2020 and be replaced by the Employment Wage Subsidy Scheme (EWSS) on 1 September 2020.
Both the EWSS and the TWSS will run in parallel from 1 July 2020 until the TWSS expires. From 31 July 2020, employers availing of the TWSS may claim for non-TWSS employees (new hires) under the EWSS.
The EWSS is expected to continue until 31 March 2020 and will be available to employers who, as a result of COVID-19, have experienced a 30% reduction in turnover or orders between 1 July and 31 December 2020.
Changes to the Pandemic Unemployment Payment
The Pandemic Unemployment Payment (PUP) has been extended to April 2021 but will close to new applicants on 17 September 2020.
The PUP is currently paid at two rates depending on the individual's previous wage in 2019 and January/February 2020 as follows – if the employee used to earn:
- €200 per week or more, the rate of the PUP is €350 per week
- less than €200 per week, they will receive €203 per week
The rates of payment of the PUP will change on 17 September 2020, 1 February 2021, and 1 April 2021.
Extension of the COVID-19 Enhanced Illness Benefit
The Enhanced Illness Benefit has been extended to 31 March 2021.
July Stimulus Package
A number of further measures have been announced by the government in the July stimulus package aimed at assisting the economic recovery of Ireland in the wake of the COVID-19 pandemic.
Further details of the new measures introduced, as well as all of the changes summarised above, can be found in our COVID-19 employer and employee supports table below.
For more information on this topic please contact Triona Sugrue, Knowledge Lawyer, Amy Martin, Solicitor or any member of the ALG Employment team.
Date published: 24 August 2020
