Subsidy provides business certainty, says Paschal Donohoe

Finance minister Paschal Donohoe said the subsidies were being extended to March 31, which was longer than had been anticipated.(Niall Carson/PA)

The employment support scheme helping businesses through the downturn will provide certainty, Finance Minister Paschal Donohoe has said.

The new Employment Wage Subsidy Scheme (EWSS) begins at the start of next month.

It was the centrepiece of the Government’s July stimulus package, designed to bolster the economy, and subsidies will be extended until the end of March.

Minister Donohoe said: “The EWSS is intended to provide employers and businesses with a high degree of certainty that this Government will continue to support them through the uncertain period ahead for the economy, and put them in a position to retain key staff end ensure viability so that they are in a strong position as the economy recovers.”

Employers will continue to pay PRSI at the reduced rate of 0.5% for jobs that are supported by the subsidy.

The minister added: “The EWSS is the centrepiece of the Government’s July jobs stimulus and I would like to encourage all employers and businesses who believe that they will continue to experience a significant decline in their level of turnover or customer orders as a result of the pandemic to avail of it.

“The EWSS has been designed with the needs of employers and businesses at its heart and is simple to qualify for, straightforward to operate and broad in its availability.”

From Tuesday the EWSS will replace the Temporary Wage Subsidy Scheme (TWSS).

The minister said the subsidies were being extended to March 31, which was longer than had been anticipated.