The Employment Wage Subsidy Scheme (EWSS), one of the central pillars of the Government’s response to the Covid-19 pandemic, has officially ended.
The EWSS and its predecessor, the Temporary Wage Subsidy Scheme (TWSS), gave out €10.66 billion over the past two years.
The TWSS was introduced on March 26th, 2020, with the objective of supporting viable firms and maintaining the relationship between employers and employees. Some 67,000 employers received subsidies of €2.8 billion to pay 690,000 employees.
The TWSS was replaced by the EWSS on September 1st, 2020. The EWSS continued to operate as an economy-wide support until Tuesday, when it officially ended.
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The EWSS has handed out €7.86 billion to 51,900 employers and 744,000 employees. Of this, €6.83 billion went towards direct subsidy payments and €1.03 billion went towards forgone PRSI.
For most businesses the EWSS ceased on April 30th. However, when public health restrictions such as earlier closing times for hospitality businesses were introduced in late December 2021, these businesses were able to avail of the scheme for an extra month.
“The wage subsidy schemes played a crucial role in preserving employment and incomes and supporting businesses at a very challenging time during the pandemic,” Minister for Finance Paschal Donohoe said.
“The success of the schemes is clearly evident by the employments supported, as well as how quickly our economy adapted and recovered following the lifting of public health restrictions,” he added.
The tourism and hospitality industry will continue to avail of a 9 per cent VAT rate for another six months.
