Claims cuts to Temporary Wage Subsidy Scheme will lead to permanent layoffs

A Donegal TD is claiming cuts to the temporary wage subsidy scheme next week will lead to permanent lay-offs by businesses in struggling sectors.

Deputy Pearse Doherty is calling on the government to extend the wage subsidy scheme until the end of October.

The Sinn Fein spokesman on finance says the scheme is to be replaced by a scheme that will cut support by 50% for most employees.

He adds that this will be made worse with confirmation from Revenue that employers will be waiting up to six weeks to receive payment of payroll subsidies under the revised scheme.

On 1st September 2020, the Temporary Wage Subsidy will be replaced by the Employment Wage Subsidy Scheme. Under the EWSS, the level of subsidy an employer will receive per paid employee will reduce significantly in comparison to the TWSS.

The TWSS provided weekly subsidies of 85% of pay for low-income workers, and between €350 and €410 for other employees.

However, Deputy Doherty says the EWSS will not provide any subsidies for low-income workers, and between €152 and €203 for other employees: