Revenue have announced further changes to the Temporary Wage Subsidy Scheme.
It is very important to note that the changes that affect employees who were earning over €76k before the COVID-19 pandemic took effect on 16 April 2020. (The earliest date that all other changes will take effect is May 4th however this date is liable to change to a later date.)
Employees who had average net weekly wages of over €960 (roughly €76k per annum gross) before the COVID-19 crisis now qualify for a subsidy under the wage subsidy scheme but only if they have taken a significant pay cut and also that pay cut has resulted in their net weekly wages (including the subsidy) being reduced below €960 per week.
The rate of the subsidy will vary between anything from €0 to €350 using a tiered approach, which is linked to the extent to which the employer is paying additional gross salary as a top-up payment as follows:
- When running payroll, if the amount entered by the employer in gross pay is up to 60% of the employee’s previous average net weekly wage then the amount of the subsidy will be €350 per week
- If the amount entered in gross pay is more than 60% but not more than 80% of the employee’s previous average net weekly wage then the amount of the subsidy will be €205 per week
- If the amount entered in gross pay is more than 80% of the employee’s previous average net weekly wages then no subsidy will be payable