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Changes to Government Supports and July Stimulus

Yesterday the Government launched the Jobs Stimulus Plan to help businesses re-open, get people back to work and promote confidence within the economy. The Stimulus is seeking to provide a boost the economy and provide a more sustainable future across Ireland in the pursuit of national recovery owing to the current health crisis. As part of the July Stimulus package a €2.3 billion expenditure on income and employment supports was announced.
 

Pandemic Unemployment Payment

The Pandemic Unemployment Payment (PUP) was introduced as a new social welfare payment for those Employees who had lost their employment or were placed on a period of layoff due to the pandemic health crisis.

While it had been initially announced that the payment would be in operation until June 9, 2020 this was then extended to August 10, 2020. Following the publication of the July Stimulus yesterday, the Government has announced a further extension of the Pandemic Unemployment Payment until April 1, 2021 as well as other changes listed below.


From September 17, 2020, the following changes will apply:

  • The payment will be closed to new applicants.

  • A new rate of €250 will be introduced for people who had previously earned between €200 and €300 per week.

  • The maximum rate of payment will be reduced from €350 to €300 for people who had previously earned over €300 per week.

  • The rate of payment will be reduced again in February 2021 to gradually bring it in line with the standard jobseeker payment of €203.


From February 1, 2021, the following changes will apply:

  • The rate of payment will be reduced from €250 to €203 for people who had previously earned between €200 and €300 per week.

  • The rate of payment will be reduced from €300 to €250 for people who had previously earned over €300 per week.

  • The COVID-19 Pandemic Unemployment Payment will end on 1 April 2021. People who were getting it will have to apply for a jobseeker’s payment if they have not found work by that date.


Temporary Wage Subsidy Scheme

The Temporary Wage Subsidy Scheme (TWSS) was introduced to provide payment of income supports to Employers in respect of eligible Employees where the Employer’s business activities have experienced significant negative disruption due to the COVID-19 pandemic, thus assisting with staff retention and preserving the employment relationship. The scheme itself will be in operation and run until August 31, 2020.


Changes introduced by July Stimulus Package

Under the July Jobs Stimulus package a new Employment Wage Support Scheme will succeed the Temporary Wage Subsidy Scheme, and run until April 2021. Under this scheme, where a business or Organisations turnover has fallen 30%, Employers will get a flat-rate subsidy of up to €203 per week per Employee, including seasonal staff and new Employees.



Disclaimer – The information in this section is provided for reference purposes only to assist Employers with the government protocols and guidance and must be read in that context and should not be used for or interpreted as a legal definition of any of the information provided. The information provided is correct of July 24, 2020 and is per information on dbei.gov.ie/ gov.ie website as of that date.  Professional advice should always be sought before making any such decisions.

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