Changes to the Temporary Wage Subsidy Scheme

The Temporary Wage Subsidy Scheme (TWSS) was introduced on 26 March 2020 to provide income support to eligible employees where the employer’s business activities have been negatively impacted by the COVID-19 pandemic. The aim of the scheme is to maximise staff retention and firm viability by maintaining the link between the employer and employee.

Minister Donohoe (Wednesday April 15) announced some further changes to the Scheme which apply to those earning less than €500 per week (approx. €31,000) as well as those earning in excess of €586 per week (€38,000).

Employees with net pay less than €586 per week (€38,000)

Employees with previous average net pay up to €412 per week (equivalent to almost €24,400).

Change: The subsidy will be increased from 70% to 85% of their previous net weekly pay.

Employees with previous average net pay between €412 and €500 per week (equivalent to €24,400-€31,000).

Change: The subsidy will be up to €350 per week.


Points to Note

  • Where an employer wishes to pay a greater level of top-up (beyond the outstanding 15% of previous pay) in order to bring the employee’s pay to €350 per week where the employee’s net pay is less than €412 per week.

Tapering would not be applied to the subsidy.

  • Those whose previous average net pay was between €500 and €586 per week (equivalent to €31,000-€38,000) continue to receive a subsidy of up to 70% of previous net income.

Up to a maximum of €410 per week.



Employees with net pay in excess of €586 per week (€38,000)

The maximum subsidy payable for this category remains €350 per week. The tiered approach takes into account both the amount paid by the employer and the level of reduction in pay borne by that employee as follows:

Gross amount paid by employer: Subsidy:
  • Up to 60% of employee’s previous average net weekly pay:

Up to €350 per week

  • Between 60% and 80% of employee’s previous average net weekly pay:

Up to €205 per week

weekly pay

  • Over 80% of employee’s previous average net weekly pay:

No subsidy payable



Points to note:

Tapering of the subsidy will apply to all cases where the gross pay paid by the employer and the subsidy exceed the previous average net weekly pay.

This is calculated by subtracting the amount paid by the employer from the previous average net weekly pay. This is to ensure that no employee would be better off under the Scheme.

Effective date

The determinations will apply for payroll with a pay date on or after the 4 May and received by the Revenue Commissioners on or after that date.



Qualification Criteria

There is no change to the qualification criteria for employers. The Subsidy Scheme is open to employers who self-declare to Revenue that they have experienced significant negative economic disruption due to COVID-19.


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