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Economic Measures

Sligo businesses can apply for the Government’s Temporary Wage Subsidy Scheme (TWSS) which can help you to keep your business functioning for the next 12 weeks.

There are other enhanced supports now available for people who have already lost their jobs and these are outlined here.

As ever, it’s important that you consult your accountant or HR/Finance teams to get a clear picture of eligibility and make your own decisions in which scheme applies to you., as some of the details are done on a self-declaration basis.

If in doubt, please do check the available information online .

Details of the interim TWSS scheme are available here: https://www.gov.ie/en/service/578596-covid-19-wage-subsidy/ .

We support the raft of new measures because it simply makes sense to enable the economy to be able to bounce back at the other end of the Covid-19 crisis.

As well as the TWSS, Sligo Chamber wholeheartedly welcomes the fact that financial help is being made available to the self-employed who are experiencing a significant loss of income. At this time, social solidarity is very important.

Proprietary directors (i.e. directors who own a material stake in a company but pay themselves a salary from the company) are eligible for the TWSS. Other self-employed business people  will be eligible for the Covid-19 Pandemic Unemployment Payment of €350 directly from the Department of Employment Affairs and Social Protection.

We understand that this is first and foremost a health emergency and we back any moves that keep all of us, our families, our workers and our community, safe.

The further social distancing measures announced by the Government and HSE are sensible and will be fully supported by the Sligo business community which is showing great forbearance in managing the crisis.

We also applaud those who continue to work, operating and managing frontline services across all sectors including retail.

The new steps economic measures announced go towards keeping vulnerable firms alive, keeping their employees engaged with them and protecting the income of individuals.

  1. COVID-19: Temporary Wage Subsidy Scheme

You can apply here: https://revenue.ie/en/corporate/communications/covid19/index.aspx

The TWSS a subsidy to allow employers who have suffered a sudden impact from COVID-

19 to continue to pay their employees. Under the scheme, an employer will receive a subsidy of 70% in respect of an employee’s net wage, up to €38,000 per annum. The scheme is intended to continue for a 12-week period and details will be provided at Revnue.ie. The latest government proposals also include an increase from €203 to €350 per week in the COVID-19 Pandemic Unemployment Payment.

The TWSS will give employers a refund of 70% of the amount of normal net pay to an employee up to a maximum of €410 per week. In calculating the amount of “normal” weekly net pay, the Revenue will simply take January and February 2020 payroll and divide by 9 to arrive at a weekly amount (projected annual salary will be this number multiplied by 52).

 

While employers are urged to top up the payment to employees, there is no obligation to do so. Top-ups will be subject to a minimal rate of PRSI (~0.5%). The subsidy plus top-up cannot exceed an employee’s previous normal wages. The scheme will operate for 3 months

 

Other key points:

  • Proprietary directors (i.e. directors who own a material stake in a company but pay themselves a salary from the company) are eligible
  • Employers are expected to make “best efforts” to top up wages/salaries if possible
  • A “sudden impact” is defined as being able to demonstrate that you have lost at least 25% of your trade
  • The scheme will be administered by the Revenue Commissioners through the PAYE setup
  • The scheme is a self-declaration scheme and the evaluation process will be quick
  • In the interim between now and the 20th of April, an interim scheme will simply provide the subsidy at a maximum rate of €410
  • The scheme will support both people who are still working and people who are effectively laid-off or on full or part-time working
  1. COVID-19: Pandemic Unemployment Payment – Increase

An increase in the COVID-19 Pandemic Unemployment Payment from €203 to €350 per week.

  1. Illness Benefit for COVID-19 Absences – Increase

An increase in the Illness Benefit for COVID-19 Absences, also to €350 per week