Temporary COVID-19 Wage Subsidy Scheme - Updated
April 6, 2020
EMPLOYER UPDATE
Temporary COVID-19 Wage Subsidy Scheme
The Emergency Measures In The Public Interest (COVID 19) Act 2020 came into operation on the 26th March 2020. These measures provide financial support to Irish Companies and their workers affected by the Covid-19 crisis who, otherwise, may be unable to pay employees their wages due to the lack of funds arising from the COVID 19 crisis and allows employers to continue to pay employees and to re-employ employees who may have been laid off. The scheme runs 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 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
- €350 per employee where the normal net pay is between €587p.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 at the time of 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.
- If an employee has more than one job the employer applies 70% of what they are paying the employee.
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.
- The additional payment, which cannot be re-grossed, are liable to income tax and USC
- Net pay must not exceed previous normal net 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
- Pension and other voluntary deductions can only be made from the “top-up” payment provided funds are sufficient.
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.mssthehrpeople.ie
Useful links for more information:-
MSS - The HR People Achieves CPD Accreditation: What It Means for You At MSS - The HR People, we’re proud to announce that we have been officially accredited to deliver CPD (Continuing Professional Development) training. This milestone reflects our unwavering commitment to delivering high-quality, practical, and professionally relevant training to businesses across Ireland. But what exactly does CPD accreditation mean? Why is it significant? And, most importantly, how does it benefit the clients and professionals who choose MSS for their HR training? What Is CPD and Why Does It Matter? Continuing Professional Development (CPD) refers to the process of tracking and documenting the skills, knowledge, and experience gained both formally and informally as professionals work, beyond any initial training. CPD is essential in every sector but especially in fields like HR, where employment law, workplace regulations, and people management practices are constantly evolving. 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.
Ireland has once again been recognised as a global leader in work-life balance, ranking second in Remote’s 2025 Global Life-Work Balance Index.
The Central Statistics Office has published the Labour Force Survey for the first quarter of 2025, offering a detailed snapshot of employment trends in Ireland.
At MSS The HR People, we’re already working with clients to get ahead of these changes and turn compliance into an opportunity for stronger engagement and trust.
Although the Mechanical Contracting Sectoral Employment Order (SEO) was formally quashed in 2023, many employers in the mechanical engineering and building services sector continue to follow the rates and terms recommended by the Connect Trade Union. In May 2025, Connect announced a new round of pay increases, which we must presume were agreed with a number of unionised companies. While these rates are no longer legally binding on the sector as a whole, they continue to serve as the benchmark industry standard, particularly for employers operating in unionised environments or engaging in public sector contracts. Why Employers Continue to Follow Union Rates Even in the absence of a statutory requirement, the Connect Trade Union rates remain widely applied. This is driven by several practical and commercial factors: Industry Expectations - Many public bodies and main contractors expect compliance with union rates when awarding work. Workforce Relations - Continuing to align with recognised terms helps maintain positive industrial relations and minimise the risk of disputes with Connect Trade Union. Attracting Talent -In a competitive labour market, benchmarked and transparent rates support recruitment and retention of qualified tradespeople. Consistency and Clarity - Using established rate structures avoids confusion and ensures alignment with sector norms. Updated Pay Rates – Effective May 2025 The revised rates announced by Connect Trade Union came into effect from 1st May 2025 , based on a standard 39-hour working week:
When “Better Than Statutory” Really Matters
What Irish Employers Need to Know About the Employment (Contractual Retirement Ages) Bill 2025. The Irish government has taken a significant step forward in reshaping retirement policy in the workplace with the publication of the Employment (Contractual Retirement Ages) Bill 2025. Once enacted, this legislation will introduce a new employment right, allowing, but not obliging, employees to remain in work until they reach the State Pension age.
A Practical Guide for Employers. In today's dynamic workforce, fixed-term and specified purpose contracts have become a common feature across various sectors in Ireland. Whether it's covering maternity leave, managing seasonal workloads, or executing specific projects, these contracts offer flexibility to employers and opportunities to employees. However, it's crucial to understand the legal framework governing these contracts to ensure compliance and protect the rights of all parties involved.
The Workplace Relations Commission (WRC) has issued its first award under the Work Life Balance and Miscellaneous Provisions Act 2023, and it's a timely reminder for employers across Ireland.
Although multiple claims had previously been submitted to the WRC under this legislation, all were unsuccessful prior to this case.
Annual leave entitlements are a fundamental part of every employee’s contract. But when it comes to calculating statutory annual leave, particularly for employees with variable hours, many employers are unsure of the rules
