COVID-19: Practical guidance on the recent changes to the Wage Subsidy Scheme
The Government has announced a number of significant changes to the COVID-19 Temporary Wage Subsidy Scheme (TWSS) in an attempt to address certain anomalies and today Revenue issued guidance on some of these changes.
The main changes, which come into effect on 4 May 2020, are an increase in the subsidy payments available to lower earners and a reduction in the subsidy payable for those earning between €586 and €960 net per week where significant employer top up payments are being made. Of particular note is that, with effect from 16 April 2020, employees who had previously been excluded from the TWSS as their average net weekly pay in January and February 2020 was more than €960 but whose current gross pay does not exceed €960 per week, may now be in a position to receive a wage subsidy payment under the TWSS.
Our employment team look at the changes to the TWSS in detail, and provide examples which help explain the practical effect of the recently announced changes.
We will continue to provide regular updates on the TWSS, as well as all other COVID-19 developments for employers. Please regularly check the A&L Goodbody COVID-19 Hub to ensure you are up to date with the latest developments.
For further information on the TWSS, please contact, Michael Doyle, Partner, Triona Sugrue, Knowledge Lawyer or Ciarán Lyng, Solicitor or any member of the ALG Employment Team.
Date published: 21 April 2020
*Updated 27 May 2020