Revenue Job Assist - IT59

Cessation of the Revenue Job Assist Scheme

The Minister for Finance, Mr. Michael Noonan T.D., has signed Regulations ending the Revenue Job Assist Scheme for any employments commencing on or after 1 July 2013. Tax relief under the scheme will continue to be available for successful claims processed for employments that commenced on or before 30 June 2013 until the end of their natural lifecycle.

A new grant based incentive for employers, to employ those who have been unemployed for greater than 12 months is now available from the Department of Social Protection. This new incentive, called "JobsPlus", is based on direct grant payments to the employers who participate in the scheme.

Further details are available on www.jobsplus.ie External link

Employer Information

Are you an Employer thinking of taking on Employees?

If the answer is YES, then you may be able to claim extra tax deductions. Revenue Job Assist allows employers a double wages deduction* in their accounts, if they employ a person who has been unemployed for 12 months or more.

*The double wages deduction may last for 3 years and applies to:

  • Wages paid to a qualifying employee in a qualifying employment and
  • Employer's PRSI contributions paid in respect of such wages

In addition you may also qualify for the Department of Social Protection Employer Job (PRSI) Incentive Scheme

Double Wages deduction

The double wages deduction is an additional deduction in calculating your taxable income for the year of assessment or accounting period.

It can last for a period of up to three years from the date the employment commences, provided the employee is still employed by you. There is no limit to the number of 'qualifying employees' you can take on under the scheme, provided they take up 'qualifying jobs'.

The deduction is not due if either you or the employee has benefited or is benefiting under any other employment scheme in respect of the job.

Double PRSI deductions

You can claim a double deduction in your accounts for employer’s PRSI contributions paid in respect of the wages paid to the qualifying employee.

Employer Job (PRSI) Incentive scheme

The Employer Job (PRSI) Incentive Scheme exempts employers from liability to pay their share of PRSI for certain employees for 18 months. Details of this scheme are available from the Department of Social Protection at: Employer Job (PRSI) Incentive SchemeExternal linkor LoCall 1890 66 22 44.

Which jobs does Revenue Job Assist apply to?

It applies to jobs which

  • Are for a minimum of 30 hours per week
  • Are capable of lasting at least 12 months.

It does not apply to jobs that are

  • Primarily commission based (i.e. over 75% of earnings derived from commission)
  • Already grant aided by other agencies (statutory or otherwise) or supported under existing schemes such as the ‘Back To Work Allowance Scheme’ administered by the Department of Social Protection.
  • As a result of the previous holder being unfairly dismissed
  • Taken up by the proprietary director of the company or the spouse or civil partner of such a director
  • In an employment where the employer requires no workforce.

You will not qualify for Revenue Job Assist for an employment, if any of your employees were made redundant in the 26 weeks prior to the date of commencement of the new employment

However, the genuine replacement of an existing employee will qualify (e.g. replacing an employee who retires or voluntarily leaves the employment).

Unlike other employment schemes there does not have to be an increase in your workforce to qualify for Revenue Job Assist.

Qualifying jobs may be notified to your local FÁS Placement Service Office, which will assist you in finding suitable employees.

Which employees can qualify?

To qualify you must employ a person who has been unemployed for the 12 months immediately prior to the commencement of the employment.

From 1 January 2010, up to 15 days of incidental employment, which has been taken into account in calculating Social Protection benefits will not be counted (i.e they must have been in receipt of Social Protection payments for 12 months plus up to 15 days to include incidental employment days).

During those 12 months (and up to 15 days, if applicable) they must have been in receipt of one of the following payments from the Department of Social Protection .

  • Jobseeker's Benefit
  • Jobseeker's Allowance
  • One-Parent Family Payment
  • Blind Person’s Pension
  • Disability Allowance

or

  • Illness Benefit - where the person has been in receipt of the payments for a continuous period of at least 18 months.
  • Invalidity Pension - where the person has been in receipt of the payments for a continuous period of at least one year

From 1 November 2011, "signing on" for credits with the Department of Social Protection, or a combination of "signing on" for credits and receipt of a payment from the Department of Social Protection for the required period is regarded as satisfying the qualifying conditions, provided that all the other conditions of the scheme are met.

Time spent on:

  • JobBridge, Tús - Work Placement Programme, Rural Social Schemes
  • Certain FÁS training courses
  • Community Employment Scheme
  • Job Initiative Programme
  • 'Workplace' five week job experience programme
  • The Back to Education Allowance administered by the Department of Social Protection

also qualify as periods of unemployment for the purposes of Revenue Job Assist, provided the participant was in receipt of one of the payments listed above immediately prior to participating in the course or scheme.

With effect from 1 January 2006, for individuals released from prison, the periods spent in prison are deemed equivalent to periods of unemployment.

How does Revenue Job Assist work?

Complete pdfApplication Form RJA - (PDF, 455KB) which enables an employee claim the additional tax credits.

  • Part 1 of this form must be completed by the employee
  • Part 2 of this form must be completed by you, as the employer, to certify that the job qualifies as outlined in the application form
  • Having completed Part 2, you should keep a copy of it for your own records to assist you in preparing your accounts
  • The completed form should be handed back to the employee who should then send it to his/her Regional Revenue Office
  • You can assume, unless you are notified to the contrary by Revenue, that you can claim the double deduction in respect of wages paid to the employee and the employer's PRSI contributions.

The following examples highlight the benefits to employers in employing a qualified employee under the Revenue Job Assist and Employer Job (PRSI) Incentive schemes.

Example 1

The saving to a sole trader under the Revenue Job Assist scheme, liable to income tax at 41%, employing a qualifying employee in a qualifying employment on a salary of €30,000 is as follows:

Year Salary PRSI 10.75% Total Double deduction allowable in accounts Saving@ 41%
1 €30,000 €3,225 €33,225 €66,450 €27,244.50
2 €30,000 €3,225 €33,225 €66,450 €27,244.50
3 €30,000 €3,225 €33,225 €66,450 €27,244.50
Total         €81,733.50

An employer may also qualify for the Employer Job (PRSI) Incentive Scheme, which can offer further savings provided the conditions of the scheme are satisfied. Under this scheme employers will not have to pay employer’s PRSI in respect of the employment for eighteen months from the date the employer is approved for the scheme. For full details see leaflet SW 128 on www.welfare.ieExternal link

The following tables set out, for the example above, the total potential savings of €82,604.25 where the employment qualifies for both the Revenue Job Assist and the Employer Job (PRSI) Incentive Schemes.

Revenue Job Assist Scheme
Year Salary PRSI 10.75% Total Double deduction allowable in accounts Saving@ 41%
1 €30,000 Nil €30,000 €60,000 €24,600.00
2 (*six months €30,000 *€1,612.50 €31,612.50 €63,225 €25,922.25
3 €30,000 €3,225 €33,225 €66,450 €27,244.50
Total         €77,766.75
Employer Job (PRSI) Incentive Scheme (18 months employer PRSI saving)
Year Salary PRSI @ 10.75% Savings
1 €30,000 €3,225 €3,225
2 (six months) €15,000 €1,612.50 €1,612.50
Total     €4,837.50

Significant tax savings to the employee, depending on their taxable status, may also accrue under the Revenue Job Assist scheme. Full details of the employee benefits are available on Leaflet IT 58

Example 2

The saving to a sole trader, liable to income tax at 41%, employing a qualifying employee in a qualifying employment on a salary of €15,000 is as follows:

Year Salary PRSI* 4.25% Total Double deduction allowable in accounts Saving@ 41%
1 €15,000 €637.50 €15,637.50 €31,275 €12,822.75
2 €15,000 €637.50 €15,637.50 €31,275 €12,822.75
3 €15,000 €637.50 €15,637.50 €31,275 €12,822.75
Total         €38,468.25

*4.25% PRSI rate applicable as weekly income less than €356.

An employer may also qualify for the Employer Job (PRSI) Incentive Scheme, which can offer further savings provided the conditions of the scheme are satisfied. Under this scheme employers will not have to pay employer’s PRSI in respect of the employment for eighteen months from the date the employer is approved for the scheme. For full details see leaflet SW 128 on www.welfare.ieExternal link

The following tables set out, for the example above, the total potential savings of €38,640.38 where the employment qualifies for both the Revenue Job Assist and the Employer Job (PRSI) Incentive Schemes.

Revenue Job Assist Scheme
Year Salary PRSI* 4.25% Total Double deduction allowable in accounts Saving@ 41%
1 €15,000 Nil €15,000 €30,000 €12,300
2 (*six months) €15,000 *€318.75 €15,318.75 €30,637.50 €12,561.38
3 €15,000 €637.50 €15,637.50 €31,275 €12,822.75
Total         €37,684.13
Employer Job (PRSI) Incentive Scheme (18 months employer PRSI saving)
Year Salary PRSI @ 4.25% Savings
1 €15,000 €637.50 €637.50
2 (six months) €7,500 €318.75 €318.75
Total     €956.25

Significant tax savings to the employee, depending on their taxable status, may also accrue under the Revenue Job Assist scheme. Full details of the employee benefits are available on Leaflet IT 58

Example 3

The saving to a company, liable to corporation tax at 12.5%, employing a qualifying employee in a qualifying employment on a salary of €30,000 is as follows:

Year Salary PRSI 10.75% Total Double deduction allowable in accounts Saving@ 12.5%
1 €30,000 €3,225 €33,225 €66,450 €8,306.25
2 €30,000 €3,225 €33,225 €66,450 €8,306.25
3 €30,000 €3,225 €33,225 €66,450 €8,306.25
Total         €24,918.75

The employer may also qualify for the Employer Job (PRSI) Incentive Scheme, which can offer further savings provided the conditions of the scheme are satisfied. Under this scheme employers will not have to pay employer's PRSI in respect of the employment for eighteen months from the date the employer is approved for the scheme. For full details see leaflet SW 128 on www.welfare.ieExternal link

The following tables set out, for the example above, the total potential savings of €28,546.87 where the employment qualifies for both the Revenue Job Assist and the Employer Job (PRSI) Incentive Schemes.

Revenue Job Assist Scheme
Year Salary PRSI 10.75% Total Double deduction allowable in accounts Saving@ 12.5%
1 €30,000 Nil €30,000 €60,000 €7,500.00
2 (*six months €30,000 *€1,612.50 €31,612.50 €63,225 €7,903.12
3 €30,000 €3,225 €33,225 €66,450 €8,306.25
Total         €23,709.37
Employer Job (PRSI) Incentive Scheme (18 months employer PRSI saving)
Year Salary PRSI @ 10.75% Savings
1 €30,000 €3,225 €3,225
2 (six months) €15,000 €1,612.50 €1,612.50
Total     €4,837.50

Significant tax savings to the employee, depending on their taxable status, may also accrue under the Revenue Job Assist scheme. Full details of the employee benefits are available on Leaflet IT 58

Employee Information

Employees will also benefit from additional tax allowances, details of which are set out in Leaflet pdfIT58 - Revenue Job Assist - Information for Employees (PDF, 805KB.) This leaflet is also available from our Forms and Leaflets LoCall service 1890 306 706 ( if calling outside the Republic of Ireland +353 1 702 3050).

Further Employer Information

You can get further information by contacting the Employers HelpLine on LoCall 1890 25 45 65

Please note that the rates charged for the use of 1890 (LoCall) numbers may vary among different service providers.

November 2014


pdfPDF Version of Revenue Job Assist - IT59 (PDF, 670KB)

pdfPDF Version of Revenue Job Assist – Frequently Asked Questions (PDF, 283KB)


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