August 7, 2020
Government must extend Temporary Wage Subsidy Scheme for affected sectors beyond September to save jobs – Pearse Doherty TD

Struggling sectors and businesses that have been ordered to close until September will be forced to lay off staff unless the Temporary Wage Subsidy Scheme (TWSS) is extended, Sinn Féin spokesperson on Finance Pearse Doherty TD has warned. 

Speaking today, Teachta Doherty said: “The Government is requiring pubs to remain closed until at least September. Yet, despite this, the Government is still pushing ahead with a one-size-fits-all removal of supports for businesses in the coming weeks. 

“From 1st September, while pubs remain closed, the Temporary Wage Subsidy Scheme will be replaced with a Scheme that will cut support by 50 percent for most employees and remove all support for low-income workers. 

“For the most affected sectors, and businesses that have been forced to remain closed, this will lead to job losses. 

“This does not make sense. There can be no-one-size-fits-all reopening of our economy. 

“In our submission to Government for the July Stimulus, we called for the TWSS to be extended for highly affected sectors. In last week’s legislation we submitted amendments to do the same, while ensuring supports for low-income workers. 

“A targeted approach to wage supports, reflecting the fact that public health measures target certain sectors more than others is common sense. It will also save jobs. 

“It is not too late for Government to change course. 

“I have written to the Minister for Finance asking that the TWSS is extended for highly affected sectors, instead of a blanket removal of supports that will cost jobs in sectors that have been forced to remain closed.” 

Notes to the editor:

On the 1st September 2020 the Temporary Wage Subsidy (TWSS) will end and be replaced by the Employment Wage Subsidy Scheme (EWSS).

Under the EWSS, the level of subsidy the employer will receive per paid employee will reduce significantly in comparison to the TWSS.

Whereas the TWSS provided weekly subsidies of 85% of pay for low-income workers, and between €350 and €410 for other employees, the EWSS will not provide any subsidies for low-income workers, and between €152 and €203 for other employees: 

Level of subsidy per paid employee under EWSS from 1st September

Employee Gross Weekly Wages                     Subsidy Payable

Less than €152                                                       ZERO

From €152 to €203                                                  €152

From €203 to €1,462                                               €203

More than €1,462                                                   ZERO

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