Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

199. To ask the Minister for Finance the percentage of employees on the temporary wage subsidy scheme receiving a top-up amount between €1 to €100 at intervals of €10, in tabular form; if he plans to introduce compulsory top-up payments similar to comparative EU wage subsidy schemes; and if he will make a statement on the matter. [16868/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Revenue publishes detailed statistics on the COVID-19 Temporary Wage Subsidy Scheme (TWSS) and weekly updates to these statistics are available at .

I am advised that Table 6 of the TWSS statistics dated 2 July(at the above link) shows the most recent analysis available in respect of additional payments by employers availing of the TWSS to employees. From this analysis, over 88% of employees have received wage payments from employers in addition to the TWSS subsidy, with 45% of weekly paid employees receiving between €1 and €100 and a further 32% receiving between €101 and €200. Further details of those receiving additional payments are set out below.

The question of an individual’s entitlements in an employment context, and the question of what wages an employer may or may not be in a position to pay such an employee in the light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the TWSS. The scheme has no role in relation to the employer/employee relationship in so far as the terms, conditions and entitlements of the employment are concerned.

The Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the objective of getting financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions that were introduced as a result of the Public Health emergency.

The TWSS is predicated on the employer wanting to keep the employees on the payroll and to retain them until business picks up. The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020. There is no distinction made regarding the subsidy amount based on whether the business has closed due to the restrictions brought in by the Government or has continued to trade with employees continuing to part-time or work full time with similar hours as before the Covid-19 pandemic.

As I advised during the Dáil Committee Stage of the bill, "it could be very possible that there will be even more companies in the future that will have a very low level of income coming in because demand for their goods or service has evaporated which means they are not in a position to add to the subsidy..."and that requiring employers to add to the 70% floor on wages "...could undermine the ability of the scheme to operate."

However, the employer is expected to make best efforts to maintain the employee’s net income reflected in the average net weekly payment for January and February 2020, for the duration of the TWSS. At the same time, there is no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but for Revenue operational systems reasons the employer will need to enter at least €0.01 in Gross Pay when running its payroll. There are no plans to change these arrangements.

Finally, I would add that details of subsidy payments made by pay date are available to view in each employee’s myAccount record on Revenue’s online system. This facility allows employees to see whether their employer is participating in the scheme and being refunded a wage subsidy on their behalf. Where the amount of subsidy paid is available from the relevant employer payroll submissions made to Revenue, that amount is also displayed.

Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source

200. To ask the Minister for Finance the status of the compliance programme introduced last month to ensure correct operation of the temporary wage subsidy scheme; the number of firms audited to date as a percentage of those currently availing of the scheme; the number of breaches found to date; and if he will make a statement on the matter. [16869/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Temporary Wage Subsidy Scheme (TWSS) supports employment during the public health restrictions necessitated by the COVID-19 pandemic. The scheme has to date supported almost 63,000 employers in maintaining the employment of some 618,000 employees at a cost over €2 billion.

The Deputy’s question refers to the ongoing programme of compliance checks by Revenue to ensure that only employers who meet the qualifying conditions, as set out in Emergency Measures in the Public Interest (COVID-19) Act 2020, are availing of the scheme and that the income supports are being properly paid to employees. Revenue has confirmed that the compliance checks, which are not part of its programme of audits and other tax compliance interventions are being carried out on a phased basis over the next few months. To date, compliance letters have issued to approximately 12% of employers availing of the scheme and many of these have already provided a prompt and satisfactory response to Revenue’s information requests. A small number of cases have been escalated to a more detailed examination and these enquiries are ongoing.

Revenue has advised me that it is too early in the programme of checks to draw conclusions, but to date the enquiries have not indicated any widespread abuse of the scheme.