Temporary COVID-19 Wage Subsidy Scheme
March 25, 2020
EMPLOYER UPDATE: Temporary COVID-19 Wage Subsidy Scheme
The Government announced on the 24th March that it intended to bring in additional measures to provide financial support to Irish Companies and workers affected by the Covid-19 crisis. One of these measures is the Temporary Wage Subsidy Scheme.
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. The scheme will run for 12 weeks from 26 March 2020.
Employers must keep employees on the payroll throughout the COVID-19 pandemic, meaning employers can retain links with employees for when business picks up after the crisis.
Employers are encouraged to facilitate employees by operating the scheme and making their best efforts to maintain a significant, or 100% income, for the period of the scheme. Information on the operation of the scheme is currently limited but the details we have so far are as follows: -
Scheme Details
- Replaces the previous COVID-19 Refund Scheme.
- The subsidy will refund employers up to a maximum of €410 per each qualifying employee.
- Employers are requested to top up, if possible, to no more than the normal take home pay.
- Scheme is also applicable to employers that are not in a position to top up.
- Employers make this special support payment through their normal payroll process.
- Employers will be reimbursed following notification to Revenue via the payroll process.
- The reimbursement will, in general, be made within two working days after receipt of the payroll submission.
- In April, the subsidy payment will be based on 70% of the weekly average take home pay for each employee up to a maximum of €410.
- Income tax and USC will not be applied to the subsidy payment.
- Employee PRSI will not apply to the subsidy or any top up payment by the employer.
- Employers PRSI will not apply to the subsidy and will be reduced from 10.5% to 0.5% on the top up payment.
Who does the scheme apply to?
The Scheme is available to employers, excluding the public service and non- commercial semi-state sector, whose business activities are being adversely impacted by the pandemic and they:-
- retain staff on payroll, whether they are temporarily not working or 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, the employer may be eligible for the scheme for some or all the employees.
Employer qualification Employers must:
- be experiencing significant negative economic disruption due to Covid-19
- be able to demonstrate, to the satisfaction of Revenue, a minimum of a 25% decline in turnover
- be unable to pay normal wages and normal outgoings fully
- the employees were 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.
The names of all 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, and €410 will be refunded in respect of each eligible employee per week.
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 26 March 2020
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 the employee’s net take home pay or €410 whichever is the lesser.
- 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 to affected employees, 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.
- The payroll submission must include pay frequency and period number.
- 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.
Based on the information provided in payroll submissions and adherence to the maximum limits Revenue will credit employers the temporary wage subsidy paid to each employee.
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.
We will endeavour to provide you with any additional, updated information, as it becomes available.
This update 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
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CPD-accredited training is independently assessed and verified to ensure that it meets industry standards for learning outcomes, relevance, structure, and delivery. Accreditation confirms that the training is not just informative, but valuable, impactful, and capable of contributing meaningfully to a participant’s professional development. In short, CPD accreditation is a mark of quality - and we’re delighted to now carry it. What CPD Accreditation Means for Us Becoming a CPD-accredited provider is a significant validation of our work. It’s more than a badge or certificate - it’s recognition from an external body that our training: Delivers clear learning outcomes Meets the expectations of professional development standards Is structured, well-presented, and aligned with current best practices Is designed with real-world application in mind For our team, this accreditation reinforces the integrity of our training content and confirms that the learning we provide is of the same high standard expected by national and international professional organisations. It also shows that we take our role as HR educators seriously. Whether we’re delivering workshops on employment law compliance, HR policies, or best-practice recruitment and onboarding, we are doing so in a way that stands up to scrutiny, offers measurable learning outcomes, and contributes to the continuous upskilling of our clients. What It Means for Our Clients and Training Participants CPD accreditation matters because it gives our clients confidence - not just in what we teach, but in how we teach it. Whether you're an SME owner trying to stay compliant, a people manager learning how to lead teams effectively, or an HR professional seeking to grow your knowledge base, attending a CPD-accredited session with MSS brings many advantages: 1. Assurance of Quality With CPD accreditation, clients know that our training is rigorously vetted. You’re not just taking our word for it - an independent body has confirmed that the training you’re investing in meets a high standard of professional learning. 2. Tangible Professional Development For individuals building their careers or maintaining professional memberships, CPD points or hours gained through our training can be recorded as part of formal CPD logs. This is especially relevant for HR professionals, business owners, and line managers who must show ongoing learning as part of their industry obligations. 3. Enhanced Employer Credibility Businesses that invest in CPD-accredited training show their teams and stakeholders that they care about learning, improvement, and staying up to date. It’s a positive reflection on company culture and helps improve employee engagement and retention. 4. Peace of Mind Around Compliance From Inclusive Leadership, Dignity at Work and Managing Difficult Behaviours, our accredited training ensures that you and your team are not only aware of your responsibilities but are applying them correctly. That means fewer risks, fewer mistakes, and a more confident leadership approach across your organisation. 5. Career Progression for Attendees Participants who undertake CPD-accredited training can use it to build their professional profile, apply for promotions, or demonstrate ongoing learning to regulatory or membership bodies. It helps turn learning into career momentum. A Mark of Trust for the Future At MSS - The HR People, we’ve always believed that training should be more than a tick-box exercise. It should inspire new ways of thinking, give people the tools to do their jobs better, and create lasting value for the businesses we support. Being CPD-accredited adds another layer of trust for our clients. It shows that we’re not just offering what’s popular or convenient - we’re offering what’s recognised, verified, and of real value. As we look ahead, CPD accreditation allows us to expand our training offering with confidence. From one-hour sessions and lunch-and-learns to multi-day workshops and tailored in-house programmes, all our CPD-accredited training will continue to be: Grounded in practical, real-world HR expertise Updated regularly to reflect changes in law and best practice Delivered in an accessible, engaging format that suits busy teams Backed by independent quality assurance Let’s Grow Together Whether you’re new to HR responsibilities or managing people across multiple departments, learning is essential. With CPD-accredited training from MSS - The HR People, you’re guaranteed a high-quality learning experience that’s both professionally recognised and immediately useful in your role. Contact us today to find out more about our CPD-accredited training programmes or visit www.mssthehrpeople.ie/hr-training for more details.
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