Finance Minister Paschal Donohoe has announced that the Temporary Wage Subsidy Scheme (TWSS) will remain in place until the end of August.

The minister said so far 58,300 employers have registered for the TWSS and over €1.37 billion has been paid out, supporting over 514,700 employees who have received at least one payment.

Donohoe (pictured) said that public health restrictions will likely remain in place for a significant numbers of businesses and employers until Phase 5, which has an indicative start date of 10 August.

The minister added: “I have always been clear that this support cannot last forever, but I am satisfied that a decision has been made, for now, to continue the scheme until the end of August.

“As the public health restrictions are eased in the coming weeks, I will expect to see a continued decline in reliance on the scheme throughout the summer as the economy continues to re-open and people are able to return to work.

In Association with

“This economic recovery will be monitored and will inform a decision later in the summer on the need for further extension or tapering beyond August."

Brian Keegan of Chartered Accountants Ireland commented: “Ireland’s subsidy scheme compares extremely favourably with similar initiatives worldwide, and credit is due to the Revenue Commissioners for in effect putting the PAYE system into reverse to make the scheme work effectively.

“Today’s extension of the TWSS brings much needed clarity for businesses at a time when the economy is gradually being reawakened. It allows businesses to plan for the coming months with a greater degree of confidence.”

Small Firms Association director Sven Spollen-Behrens said: “The government’s decision has today given thousands of small business owners the certainty they need to plan for the coming months. By extending the Temporary Wage Subsidy Scheme, small business owners can pay their employees, get their businesses reopened and contribute to the reboot of the economy.

“This decision also recognised the needs of those in the hair and beauty, events and sports and leisure sectors who are not scheduled to reopen until much later in the summer. Our self-employed community will be greatly relieved to hear that they will continue to qualify for the extended Pandemic Unemployment Payment," he added.

Pandemic Unemployment Payment

The €350 a week Pandemic Unemployment Payment has also been extended from June 9 to August 10.

However, from June 29 there will be a new two level payment structure to link the PUP level to prior earnings.

For those whose prior employment earnings were €200 per week or higher (about 75% of recipients), the PUP rate will remain at €350 per week

For individuals whose prior employment earnings were up to €199.99 per week (about 25% of recipients), the PUP rate will be €203 per week - the primary rate of payment of the Jobseeker’s Benefit scheme.

Donohoe stated that no person on the lower rate of payment will receive less on PUP than they were previously paid by their employer.