Covid-19 wage support change means 85% subsidy for those earning less than €24,400

The government is changing the Covid-19 wage subsidy scheme for employers in a bid to keep part-time workers in their jobs.

The move comes following concern that some part-time workers were not turning up to work as the Covid-19 emergency payment scheme paid out more.

Minister for Finance Paschal Donohoe told RTÉ radio’s News at One that under the change the state subsidy for employers will increase from 70% to 85% for workers who earn less than €24,400 per year.

"We're putting in place a set of changes in relation to the wage subsidy scheme today for incomes that are less than €24,400 per year we will increase the subsidy that the state makes available to employers from 70% to 85%."

Mr Donohoe said that the emergency Covid payments would last for 12 weeks, but he warned that while the State can afford such payments for now, it could not continue indefinitely.

The Minister said that it will be possible for the economy to grow again, but the main challenge now is to get people back to work.

The change in the wage subsidy scheme is a bid to keep people at work and to provide a bridge between employers and employees.

It does pose an additional cost, he acknowledged, depending on how many avail of the scheme, but he said he is hoping that there will be a saving on the numbers accessing the pandemic payment which will balance it out.

At present, there are 533,000 on the Covid-19 payment while there are 42,000 employers availing of the wage subsidy scheme.

“I hope these changes will play an important part.”

Earlier today, the chief executive of the Convenience Stores and Newsagents Association, Vincent Jennings has claimed that it is difficult to get part-time staff because

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