Written answers

Thursday, 19 June 2025

Department of Employment Affairs and Social Protection

Employment Support Services

Photo of Michael MurphyMichael Murphy (Tipperary South, Fine Gael)
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169. To ask the Minister for Employment Affairs and Social Protection to detail any plans he has to review the wage subsidy scheme. [31582/25]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The Wage Subsidy Scheme is a key disability employment support. It aims to encourage employers to offer substantial and sustainable employment to people with disabilities through a subsidy.Last year, my Department published a review of the Wage Subsidy Scheme, following a public consultation, to make the scheme more flexible and effective. The review made six recommendations, including to reduce the minimum required hours of the scheme, and to expand the scheme to employers outside of the private sector and to those on Partial Capacity Benefit. An additional €3.7 million was allocated to implement the review’s recommendations.In April 2024, the minimum hours for the scheme were reduced from 21 to 15 hours. This change will help make sure employees who are offered substantial work while also making the scheme more accessible.The terms ‘productivity deficit’ and ‘productivity shortfall’ were removed from the scheme. To qualify for the updated scheme, the employee’s ability to work must be limited due to their disability or health condition and, as a result, the employee’s tasks or role need to be significantly adapted by the employer. Removing these terms from the scheme aligns the scheme better with the social model of disability and the United Nations Convention on the Rights of Persons with Disabilities.The review also recommended to regularly review the subsidy rate. As part of Budget 2022, my Department increased the base subsidy rate from €5.30 to €6.30 per hour and we have implemented that change.The final recommendation was to promote and increase awareness of the scheme. Earlier this month, I formally launched the reformed scheme together with the Taoiseach, Minister Foley and Minister of State Naughton in attendance. We are also now running a media campaign to raise awareness of this very beneficial scheme for employers and employees.The Programme for Government commits to reviewing the minimum hours requirement under the Wage Subsidy Scheme and examining an increase in the payment rate.We will advance those commitments over the lifetime of the Government and in light of available resources.I trust that this clarifies the issue for the Deputy.

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