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COVID-19 Temporary Wage Subsidy Scheme

Revenue has announced the operation of the Temporary COVID-19 Wage Subsidy Scheme on behalf of DEASP. The scheme, enables employees, whose employers are affected by the pandemic, to receive significant support directly from their employer. The scheme will run for 12 weeks from 26 March 2020.

The scheme is available to employees who were on the employer’s payroll as at 29 February 2020, and for whom a payroll submission has already been made to Revenue in the period from 1 February 2020 to 31 March 2020.

The amount employers can pay to their employees as part of this scheme has changed:

15 March 2020 to 25 March 2020 €203 per week
26 March 2020 to 19 April 2020 €410 per week
20 April 2020 onwards

70% of the average take home pay for each employee up to a maximum of €410 per week.

The calculation is based on your employee's pay in January and February 2020. To see these figures, refer to the Review your employees' pay article.

Key Features of the scheme:

  • Replaces the previous COVID-19 Refund Scheme.
  • Initially, and from 26 March 2020, the subsidy scheme will refund employers up to a maximum of €410 per each qualifying employee.
  • However, employers should pay no more than the normal take home pay of the employee.
  • The subsidy scheme applies to employers who top up employees’ wages and those that aren’t in a position to do so.
  • Employers make this special support payment to their employees through their normal payroll process.
  • Employers will then be reimbursed for amounts paid to employees and notified to Revenue via the payroll process.
  • The reimbursement will, in general, be made within two working days after receipt of the payroll submission.

Related articles

Temporary Wage Subsidy Scheme - Operational Stage

Paying COVID-19 Wage Subsidy

COVID-19 Wage Subsidy Scheme- Frequently Asked Questions

Disclaimer

This article provides general rather than specific guidance to assist all of our customers. We always do our best to make sure that the information is correct but as it's general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements. For Employers, PAYE, PRSI and general tax enquiries you should call Revenue of Ireland (ROS) National Employer Helpline on 01 738 36380 or visit their website at Revenue Online In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.

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