Employment Wage Subsidy Scheme has now ended for all businesses
The In In Phased By Of Ewss Reduction April Following Of Most End February, The Out For Businesses A Was The Support Rate
The Employment Wage Subsidy Scheme (EWSS) has ended today for all businesses.
Following a reduction in the rate of support in February, the EWSS was phased out for most businesses by the end of April.
However, businesses that were directly impacted by the public health restrictions in late December 2021, primarily those in the hospitality sector, were permitted to receive wage subsidy support until today.
The EWSS or its predecessor, the Temporary Wage Subsidy Scheme (TWSS), has been in place for over two years, since March 2020 at the outbreak of the Covid-19 pandemic in Ireland.
The wage subsidy schemes provided over €10.66bn in wage support to employees. €2.8bn was issued in respect of TWSS which supported 67,000 employers in respect of almost 690,000 employees.
The EWSS, introduced 1 September 2020, provided €7.86bn in support to employers and their staff. €6.83bn of this was comprised of direct subsidy payments, while the remaining €1.03bn was provided through forgone PRSI.
Overall, the EWSS supported 51,900 employers in respect of almost 744,000 employees.
The two wage subsidy schemes played a large role in the Government’s economic response to the Covid-19 pandemic.
In Budget 2022, the Government detailed the future direction of EWSS, setting out the gradual phasing out of the programme. Following prevailing public health restrictions due to the Covid-19 pandemic, these arrangements were subsequently enhanced on a number of occasions.
The Government also recently announced a 6 month extension to the 9 per cent VAT rate for the tourism and hospitality industry.
Minister for Finance, Paschal Donohoe said: "Today marks the end of the very successful Employment Wage Subsidy Scheme (EWSS), over two years after a wage subsidy scheme, the Temporary Wage Subsidy Scheme (TWSS), was first introduced in March 2020.
"The wage subsidy schemes played a crucial role in preserving employment and incomes and supporting businesses at a very challenging time during the pandemic.
"I signalled the end of the EWSS many months ago to give businesses sufficient time to plan and adapt as necessary, and I expect that many businesses have seen a resumption in their levels of trade," he added.