David Cullinane (Waterford, Sinn Fein)
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63. To ask the Minister for Finance if his attention has been drawn to the fact that the calculation of average net weekly pay for the purposes of the temporary wage subsidy scheme may cause an underpayment to some persons that are usually paid monthly (details supplied); if adjustments are planned to rectify the underpayment; and if he will make a statement on the matter. [13365/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Temporary Wage Subsidy Scheme (TWSS) is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy.  Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the objective of getting assistance to employers and employees, where businesses have been seriously affected by the pandemic.

The amount of subsidy payable to eligible employees is based on their ‘average revenue net weekly pay’ (ARNWP) for January and February 2020, as returned by the employer to Revenue through the real-time PAYE system. The ARNWP calculation is based on the number of insurable weeks within the January/February period rather than the pay frequency used as this is a more accurate and consistent method across all types of employees.

Revenue advise me that, for example, an employer payroll submission for an employee who is monthly paid and works for the full month of January 2020 includes a pay frequency of ‘monthly’ with ‘five insurable weeks’, while another employee who is also monthly paid and starts work with the employer on 20 January includes a pay frequency of ‘monthly’ with ‘two insurable weeks’. To correctly calculate the ARNWP for both employees, the use of insurable weeks rather than pay frequency is necessary. Using a pay frequency-based calculation on the second employee would be incorrect as the payment reported is in respect of two weeks work rather than a full month.

Revenue further advise me that, in the example referenced by the Deputy, there is no underpayment of subsidy. If the employee was paid for two full months in January and February 2020, then there are nine insurable weeks reported on the payroll and the ARNWP is correctly calculated by dividing the total net pay figure by nine.