Wednesday, 20 May 2020
Department of Employment Affairs and Social Protection
Wage Subsidy Scheme
1265. To ask the Minister for Employment Affairs and Social Protection if she is satisfied that the terms of the wage subsidy scheme are such that in circumstances in which a PRSI credit has been applied for the duration of the scheme by an employer in respect of an employee that the social protection or pension contributions of that employee are not diminished particularly when retirement of the employee will take place; and if she will make a statement on the matter. [6572/20]
The Temporary Wage Subsidy Scheme, which is operated by Revenue, provides the payment of support to employers in respect of eligible employees where the employer’s business has experienced significant disruption due to the Covid-19 pandemic. As set out in the legislation underpinning the scheme, employers are required to record PRSI at Class J9 for each employee in respect of whom a subsidy is being claimed. This is required for Revenue administration purposes and to allow for the reconciliation of subsidy payments made.
In the exceptional circumstances of the Covid-19 pandemic, it is important that employees do not have their social insurance records interrupted or otherwise adversely impacted for future social welfare entitlements including for contributory State pension qualification purposes due to their participation in the scheme.
My Department is currently developing legislative proposals for consideration by the Government in the near future.
I trust that this clarifies the matter for the Deputy.