Temporary COVID-19 Wage Subsidy Scheme

March 27, 2020

EMPLOYER UPDATE

The Dail approved the Emergency Measures In The Public Interest (COVID 19) Bill 2020 on the 26th March, which is the effective date of the new Wage Subsidy Scheme. These measures are to provide financial support to Irish Companies and workers affected by the Covid-19 crisis to businesses who otherwise are unable to pay employees their wages due to the lack of funds arising from the COVID 19 crisis.

The scheme will support employers who are affected by the pandemic by providing financial support to allow employees to continue to be paid as employees and to re-employ employees who may have been laid off. The scheme will run for 12 weeks from 26 March 2020.

Employers must keep employees on the payroll throughout the COVID-19 pandemic so that employers retain their links with employees for when business picks up after the crisis.

Employers are encouraged to make their best efforts to maintain a significant, or 100%, net income, for the period of the scheme. A summary of the operation of the scheme is as follows: -

Scheme Details

· Employers will not apply the €350 payment under the COVID-19 Unemployment Payment Refund Scheme anymore.

· The subsidy will refund employers up to a maximum of :-

o €410 per qualifying employee, where the employees normal net pay is €586 p.w. or less

o €350 per employee where the normal net pay is between €586 p.w. and €960 p.w

· The scheme will not apply if net pay is in excess of €960 p.w.

· The reimbursement will, in general, be made within two working days after receipt of the payroll submission.

· Employers are requested to top up, if possible, to no more than the normal take home (net) pay, but must pay a top up of at least € .01

· From no later than the 20th April, the subsidy payment will be based on 70% of the weekly average take home pay for each employee up to the relevant maximum.

· Income tax, PRSI, LPT and USC will not be applied to the subsidy payment. (This will be balanced at year end.)

· Employee PRSI will not apply to the subsidy or top up payments.

· Employers PRSI will not apply to the subsidy and will be reduced from 11.5% to 0.5% on the top up payment. (Class J9)

Who does the scheme apply to?

The Scheme is open to businesses, excluding the public service and non-commercial semi-state sector, who are being adversely impacted by the pandemic and they:-

· retain staff on payroll or re-employ laid off staff, whether they are on reduced hours and/or reduced pay.

· The employer meets the conditions set out below and subject to the levels of pay given to the employees.

Scheme Qualification

Employers must:

· be experiencing a significant negative economic disruption due to Covid-19

· Applications will be self-assessed – employers must presume this will be checked at some date with potential serious consequences for any unsustainable claim

· be able to demonstrate, to the satisfaction of Revenue, an expected minimum of a 25% decline in turnover in Q2

· be unable to meet normal wages and normal outputs fully.

Employees must:

· have been on the employer’s payroll as at 29 February 2020, and

· for whom a payroll submission has already been made to Revenue in the period from 1 February 2020 to 15 March 2020.

· be employees who were laid off after 29th February and are taken back onto the payroll.

Publication

The names of employers operating this scheme will be published on Revenue’s website in due course, after the scheme has expired.

Employer Registration

Any employer, already registered with Revenue for the Employer COVID-19 Refund Scheme, is not required to take any further action. The employer may make payroll submissions from 26 March 2020 under the subsidy scheme arrangements on the same basis as they were doing for the Employer Refund Scheme.

Employers, or their agents, wishing to register for the scheme can apply to Revenue by carrying out the following steps:

· Log on to ROS myEnquiries and select the category ‘Covid-19: Temporary Wage Subsidy’.

· Read the “Covid-19: Temporary Wage Subsidy Self-Declaration” and press the ‘Submit’ button.

· Ensure bank account details on Revenue record are correct. These can be checked in ROS and in ‘Manage bank accounts’, ‘Manage EFT’. Enter the refund bank account that the refund is to be made to.

Operating the scheme from Thursday 26th March 2020

Transitional Phase - The employer runs the payroll as normal, entering the following details for each relevant employee under the Scheme:

· PRSI Class set to J9.

· A non-taxable amount equal to 70% of the employee’s net take home pay subject to the €410/ €350 maximum.

· If an employer is not making any payment to the employee, they should include a pay amount of €0.01 in Gross Pay.

· If an employer is making additional wage payments they should include this amount in the Gross Pay.

· It is important that employers do not include the Temporary Wage Subsidy payment in Gross Pay.

· Net pay must not exceed previous normal pay

· The payroll submission must include pay frequency and period number.

Normal Weekly Net Pay

This is the Average Net weekly pay for January and February 2020 based on revenue returns by 15th March 2020.

· Take the employee’s “Gross pay” and from it subtract the “Income Tax Paid”, the “USC Paid” and the “Employee PRSI Paid”.

· Total this figure for each pay date in Jan and Feb 2020 and divide this by the number of insurable weeks (capped at 9) for the period.

· This gives the employee’s average pay that is to be used for the subsidy amount

Income tax, USC, LPT, if applicable, and PRSI are not deducted from the Temporary Wage Subsidy.

The payment of the Temporary Wage Subsidy and any additional income paid by the employer may result in the refund of Income Tax or USC already paid by the employee. Any Income Tax and USC refunds that arise as a result of the application of tax credits and rate bands can be repaid by the employer and Revenue will also refund this amount to the employer.

Employers must not operate this scheme for any employee who is making a claim for duplicate support (e.g. Pandemic Unemployment Payment) from the DEASP.

Where an employee is not covered by this scheme, they may still be able to avail of the Covid-19 Pandemic Unemployment Payment or Short-time Work

Support/Job Seekers Benefit.

Please note Penalties will apply to any abuse of the Subsidy Scheme by self-declaring incorrectly, not providing funds to employees or non-adherence to Revenue, and any other relevant, guidelines.

This update is for guidance only and is provided by the MSS HR Support Service

Further details on the update or about our services may be obtained from:

John Barry/Tara Daly/ Hugh Hegarty at Tel: 01 8870690

Email: info@mssirl.ie Website: www.mssirl.ie

Useful links for more information:-

https://revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-temporary-covid-wage-subsidy-scheme.pdf

https://revenue.ie/en/corporate/communications/documents/guidance-on-employer-eligibility-and-supporting-proofs.pdf

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WRC Inspections Continue to Rise

By Tara Daly • December 11, 2025

SMEs Should Prepare Now for 2026 As we reach the end of 2025, the Workplace Relations Commission is continuing to increase its inspection activity. Over the past three years, inspections have become more frequent, more targeted, and increasingly unannounced, a trend that shows no sign of slowing as we move into 2026. For employers, especially SMEs with limited internal HR capacity, this means one thing: the best time to prepare is now, before year-end pressures take over and before the next inspection cycle begins. Inspection Activity Has Risen Year on Year Publicly available data shows a clear upward trend: • 2022: 3,943 inspections, approx. 60% unannounced • 2023: 4,727 inspections, 3,662 unannounced (approx. 77 %) • 2024: 5,156 inspections, with the WRC confirming a further increase in unannounced site visits, particularly in targeted and joint operations (eg. Revenue, Garda National Immigration Bureau, Social Welfare, etc.) That is a 30% rise in total inspections in just two years, and early indications suggest the WRC will maintain this pace into 2026. Why This Matters for SMEs SMEs make up over 99% of businesses in Ireland, and many do not have a dedicated HR or compliance function. This makes them more vulnerable during an unannounced WRC inspection, where documentation must be produced immediately and the consequences of being unprepared are far more significant for SMEs who cannot absorb: • Financial penalties • Compliance orders • Disruption to operations • Reputational damage • Staff time diverted to crisis management With the increasing trend in enforcement activity and unannounced visits, SMEs should assume they could be selected for inspection in 2026 and ensure they have the systems, documentation and records ready. Why Employers Need to Be Ready Going Into 2026 The WRC’s annual reports typically publish in Q2, meaning the full 2025 inspection breakdown will not be available until mid-2026. However, current patterns indicate: • Increased unannounced inspections across all sectors • More joint visits with Revenue, Social Protection and Gardaí • Focus on working time, payroll accuracy, permits and record-keeping • Less tolerance for incomplete or inconsistent documentation Preparing now ensures your business, particularly if you are an SME without in-house support, is not left vulnerable. Key Areas Under Scrutiny During an inspection, employers must produce statutory documentation immediately, including: • Contracts of employment • Working time and break records • Payroll and pay-reference-period data • Annual leave and public holiday records and calculations • Employment permit documentation • HR policies, procedures and statutory records MSS- WRC Inspection Preparation Audit (Particularly designed for SMEs) Our Audit help employers get ahead before year-end, MSS The HR People offer a structured WRC Inspection Preparation Audit, specifically designed to support SMEs who may not have a full HR team. Our six-step process includes: Compliance Audit: Review of contracts, policies and statutory documentation Record-Keeping & Documentation Review: Templates and statutory checklists Corrective Action Plan: Clear and practical steps to close any gaps Mock WRC Inspection: A simulated visit with a full written report On-Call Support on the Day: Expert HR assistance during a live inspection Post-Inspection Follow-Up: Support responding to any findings or compliance orders This proactive audit protects SMEs from risk, disruption and penalties and provides peace of mind heading into 2026. Prepare Now, Avoid Pressure Later We are observing instances where a WRC inspection coincides with an employer having a live or upcoming WRC complaint listed for hearing. While this does not indicate any direct link between the two processes, it highlights an important practical point for employers: if you have a pending WRC case, it is prudent to ensure that all employment records, contracts, policies and statutory documentation are fully up to date and compliant. A scheduled hearing can often prompt an employer to review their practices, but by that stage it may be too late to correct underlying non-compliance identified during an inspection. Taking proactive steps early can significantly reduce risk and demonstrate good faith if those records become relevant in any subsequent proceedings. December and January is an ideal time for employers, particularly SMEs, to review compliance, update records and identify any gaps as the new year begins. Preparing now ensures you are fully inspection-ready for 2026. If you would like support preparing for a WRC inspection or wish to arrange a pre-inspection audit, our HR Partners are ready to assist. info@mssthehrpeople.ie , Ph: +353 1 887 0690, www.mssthehrpeople.ie

Two Major Employer Compliance Portals go Live

By Tara Daly • December 11, 2025

What Employers Need to Do Before Year End

Plasterer Wins €16,940 at WRC After Underpayment

By Tara Daly • December 11, 2025

A Warning for Employers and the Importance of Compliance

Increases to the Minimum Wage Ireland Rate 2025

By Tara Daly • December 11, 2025

With effect from on 1 st January 2026, the national minimum hourly rate will become €14.15. The full rate applies to any employee who is at least 20 years of age except as detailed below; EMPLOYEE MINIMUM HOURLY RATE Aged 20 or more - €14.15 (100%) Aged 19 - €12.735 (90%) Aged 18 - €11.32 (80%) Aged under 18 - €9.905 (70%) Who does it not apply to? The National Minimum Wage rate does not apply to the remuneration of a person who is; The spouse, father, mother, grandfather, step-father, step-mother, son, daughter, step-son, step-daughter, grandson, grand-daughter, brother, sister, half-brother or half-sister of an employer, employed by the employer, or A craft apprentice within the meaning of or under the Industrial Training Act, 1967, or the Labour Services Act, 1987. Alternative minimum rates may be set down under Sectoral Employment Agreements (SEAs) or created by Employment Regulation Orders - Workplace Relations Commission . Working Hours Full time, part time, temporary, casual or seasonable employees are all entitled to the National Minimum Wage for hours worked. Calculation of Hourly Pay (Reckonable Pay) Reckonable pay means payments that are allowable in calculating an average hourly rate of pay under the National Minimum Wage Act. The following payments may be taken into account when determining average hourly rate of pay. Basic Pay Shift Premium Piece/Incentive Rate. Commission Any payments under section 18 of the Organisation of Working Time Act, 1997 (zero-hour protection) Productivity-related bonuses Service charge paid through payroll Board of Lodgings- If you receive board or lodgings, that is food or accommodation from your employer, the maximum amounts that can be included from 1 January 2026 are for: - - board only €1.27 per hour worked - accommodation only €33.42 per week or €4.77 per day Non- Reckonable Pay The following payments cannot be included to make up the national minimum wage rate: Overtime, call-out premiums, service pay, weekend and public holiday premiums, expenses incurred by the employee in carrying out their employment, unsociable hours premiums, tips or gratuities paid through the payroll, and allowances for special or additional duties may not be included, benefit in kind payments (except board of lodging), payments while absent from work i.e. sick pay, pension contributions, redundancy payments, compensation for injury, employer loan, an advance on wage/ salary, any sum payable to an employee in lieu of notice of termination of employment. Pay Reference Period The period over which you may calculate the average earnings (Pay Reference Period) may be a week, or a fortnight but must not be longer than one month. Employers are obliged to advise employees of the pay reference period they are selecting for calculations of minimum pay. Employees must be notified in writing as part of their Terms and Conditions of Employment. An employee may request from his or her employer a written statement of the employee's average hourly rate of pay for any pay reference period (other than the employee's current pay reference period) falling within the 12-month period immediately preceding the request. Employee Complaints An employee may make a complaint to the Workplace Relations Commission to investigate allegations of failure by the employer to pay the National Minimum wage or victimisation of an Employee. Such a referral must be within 6 months from the date of receipt of a written statement or from the latest date the employer should have given a written statement. Employees may not refer a complaint before requesting a written statement from their employer. Steps for Employers Employers should now implement the required changes to the rate of pay for those who are currently earning less than the new National Minimum Wage. There is no automatic right of an increase to those who are already earning in excess of the minimum wage. However, it is likely that some employers may face requests for the same. Whilst ordinarily there is no need for an Employer to notify an Employee that the National Minimum has been increased, some employers choose to issue a letter confirming their new rate of pay and the date on which it will be reflected in their pay. A template for this letter can be found on our HR Hub. Minimum Wage in Review With this most recent increase in the National Minimum Wage, an employee on minimum wage who works a full 39-hour week will now receive an additional €40.90 per week, or an extra €2,129.40 gross per year. It remains to be seen how employers will cope with these increases. As the new National Minimum Wage rate takes effect from 1 st January 2026, employers should take the time to review their current pay structures, budgets, and payroll systems to ensure full compliance. Staying proactive and informed will help employers manage these adjustments smoothly and maintain positive employee relations in an evolving pay landscape. If you require any assistance in reviewing pay structures, updating employment contracts, or ensuring full compliance with the new National Minimum Wage obligations, our team is here to help. You can contact MSS The HR People on 01 8870690 or email info@mssthehrpeople.ie and we will be happy to support you.