Written answers
Tuesday, 23 July 2024
Department of Employment Affairs and Social Protection
Departmental Data
Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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1266.To ask the Minister for Employment Affairs and Social Protection for a breakdown of the different subsidy rates over the past ten years for the wage subsidy scheme; and if she will make a statement on the matter. [31572/24]
Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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1267.To ask the Minister for Employment Affairs and Social Protection the average number of recipients of the wage subsidy scheme for people with disabilities in 2022, 2023 and 2024. [31573/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 1266 and 1267 together.
The Wage Subsidy Scheme is an employment support to private sector employers, the objective of which is to encourage employment of people with disabilities in the open labour market.
The financial supports for employers are structured under three separate strands and companies could benefit under one strand or under two or three strands simultaneously depending on the number of people with a disability employed, as below:
- Strand I is a general subsidy for any perceived productivity shortfall in excess of 20% for a person with a disability, in comparison to a colleague without a disability. The subsidy is based on the number of hours worked subject to a minimum of 15 hours and a maximum of 39 hours per week.
- Strand II subsidy is payable when an employer employs three or more people with disabilities under the scheme. Strand II is intended to cover the additional supervisory, management and other work-based costs relating to such employees. This top-up payment is a percentage of the Strand I subsidy and is based on the overall number of employees with a disability employed under Strand I. It ranges from an additional 10% of wage subsidy for 3 to 6 employees with a disability to a maximum of 50% of wage subsidy for 23 or more employees with a disability. Therefore, when an employer has 23 or more Wage Subsidy Scheme employees, a 50% top-up is applied to the hourly rate increasing the current payment rate to €9.45 per hour for each employee.
- Strand III subsidy enables employers who employ 25 or more workers with a disability on the Wage Subsidy Scheme to be eligible for a grant of up to €30,000 per year towards the expense of employing an Employment Assistance Officer to support these employees.
- The Wage Subsidy Scheme transferred to the Department of Social Protection in 2012 and the basic subsidy rate under Strand I and Strand II remained unchanged up to 2021 at €5.30 per hour. The maximum rate was €7.95 for employers with 23 or more employees on the scheme.
- In Budget 2022, I increased the basic subsidy rate to €6.30 per hour. This gives a total annual subsidy available of €12,776 based on a 39-hour week. The maximum subsidy rate is €9.45 per hour, with a total subsidy available of €19,164.60 per year based on a 39-hour week.
- I have outlined the rates in tabular format below:
- Rates 2015 - 2021
Number of WSS supported employments Base rate of subsidy per hour % Subsidy increase Effective rate of subsidy per hour 1-2 €5.30 0% €5.30 3-6 €5.30 10% €5.83 7-11 €5.30 20% €6.36 12-16 €5.30 30% €6.89 17-22 €5.30 40% €7.42 23+ €5.30 50% €7.95 Number of WSS supported employments Base rate of subsidy per hour % Subsidy increase 1-2 €6.30 0% 3-6 €6.30 10% 7-11 €6.30 20% 12-16 €6.30 30% 17-22 €6.30 40% 23+ €6.30 50%
During 2022, a monthly average of 847 employers availed of the subsidy in respect of an average of 1,457 participant employees. During 2023, a monthly average of 1,514 employers availed of it in respect of an average of 2,418 participant employees. In the six months up to June 2024, an average of 1,508 employers have availed of the subsidy in respect of an average of 2,444 participant employees.
My department is currently undertaking a review of the Wage Subsidy Scheme under the Comprehensive Employment Strategy for people with Disabilities. As part of this review, an extensive public consultation was undertaken with over 1,000 responses received.
My officials are currently compiling the analysis from the consultation and working on completing the report, which I expect to be finalised over the coming weeks.
I trust that this clarifies the issue for the Deputy.
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