Finance minister Paschal Donohoe has announced that the Employment Wage Subsidy Scheme will be extended until 30 April 2022, in a graduated form.

Presenting Budget 2022, the minister outlined the  broad parameters of this extension, which has an estimated cost of €1,260 million.

• Current arrangements for EWSS remain in place until end-November 2021.
• For the three months December 2021 to February 2022, the original two-rate subsidy per employee per week (€151.50 and €203) will apply.
• For the two months March 2022 and April 2022, a single flat rate of €100 per week will apply.
• The existing reduced rate of Employers’ PRSI (0.5%) will continue to apply until the end of February 2022. The full Employers’ PRSI contribution will be reintroduced from 1 March 2022 until the scheme ends.
• Scheme to conclude on 30 April 2022.

Eligibility for the scheme will continue to be a 30% reduction in turnover/customer orders in the full year 2021 as compared to the full year 2019. The scheme will close to new employer entrants with effect from 1 January 2022.

The cost of the subsidy is paid for from the Social Insurance Fund.

Photo: Ministers Paschal Donohoe (right) and Michael McGrath. (Pic: Sasko Lazarov / RollingNews.ie)

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