Employment wage subsidy scheme (EWSS)

• Employers must self-declare to Revenue that they have experienced significant negative economic disruption due to COVID-19.

• For paydates in 2020, there must be a minimum of 30% decline in turnover between 1 July and December 2020 and an inability to pay normal wages and other outgoings, in accordance with Revenue guidance.

• The decline in turnover/orders is relative to:

  • the same period in 2019, where the business existed prior to 1 July 2019;

  • the date of business commencement to 31 December 2019; or

  • the projected turnover or orders, where a business commenced after 1 November 2019.

• For 2021 paydates, this reduction in turnover or orders is relative to the same period in 2019.

• Special rules apply where the business commenced after 1 January 2019.

• Employers must prepare a forecast of the likely reduction before they claim the EWSS for 2021.

• Businesses are required to undertake a review on the final day of every month to ensure they continue meeting the eligibility criteria.

• The scheme will be open to newly hired employees as well as to seasonal staff; proprietary directors and newly hired connected parties are excluded.

The level of subsidy the employer will receive is per paid employee. The support will be backdated to 1 July for qualifying employers who did not qualify for TWSS.

On 19 October 2020, the Minister for Finance announced increased subsidy rates to be applied to paydates on or after 20 October 2020 until 31 January 2021 as follows:

• A 0.5% rate of employers PRSI will continue to apply for employments that are eligible for the subsidy.

• A list of employers availing of the EWSS will be published on Revenue's website in January 2021 and April 2021.