The Employment Wage Subsidy Scheme (EWSS) announced last week as part of the overnment’s July Jobs Stimulus will continue to play a vital role in sustaining businesses and jobs as it takes over from the Temporary Wage Subsidy Scheme (TWSS) from 1 September next.
Currently, an estimated 390,000 employees are being directly supported by the TWSS and overall to-date, gross payments to employers under the scheme amount to over €2.3 billion. The Employee Wage Subsidy Scheme is estimated to cost a further €2.3 billion over its duration to end-March 2021.
The Minister for Finance Paschal Donohoe TD has asked the Revenue Commissioners to reinstate Proprietary Directors to the Employment Wage Subsidy Scheme (EWSS) from 1st September where they meet the objective of the scheme of retaining ordinary employees on payroll.
Minister Donohoe has also asked his department to review the provision with the Revenue Commissioners during August consistent with achieving the above objective while also protecting the integrity of the EWSS.
Speaking today on the matter, Minister Donohoe said: “Over the past 48 hours I have listened to the concerns of certain Proprietary Directors in relation to provisions of the EWSS. These Proprietary Directors have been using the Temporary Wage Subsidy Scheme (TWSS) to retain “ordinary” employees in their business over recent months and they would wish to continue to do so under the new EWSS. Having considered the points raised with me, I have decided to ask the Revenue Commissioners to reinstate Proprietary Directors to the EWSS from 1 September where they are retaining ‘ordinary’ employees on their payroll. The EWSS is an economy wide support for employers and a key element of the Government’s July Jobs Stimulus, the focus of which is on measures that immediately and directly support the economy and help to actively retain and create jobs.”
Guidance will issue from the Revenue Commissioners in good time for the commencement of the scheme on 1st September.
Any legislative amendments will be included in the Finance Bill later in the year.