Temporary COVID-19 Wage Subsidy Scheme (TWSS)
Rules for the rate of wage subsidy payable
The TWSS ended on 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme. The information on this page is for reference purposes.
Rates in the transitional phase (26 March to 3 May 2020)
The TWSS initially refunded employers up to a maximum of €410 per each qualifying employee, regardless of the employee’s income.
An employer could make an additional payment to the employee. Additional payments, when added to the wage subsidy, could not exceed the employee’s average net weekly pay.
From 16 April 2020, where the employee’s earnings had been reduced by:
- less than 20%, no subsidy was payable
- between 20% and 39%, a subsidy of up to €205 was payable
- 40% or more, a subsidy of up to €350 was payable.
Maximum wage subsidy
The maximum wage subsidy was calculated using the:
- employee’s Average Revenue Net Weekly Pay (ARNWP) for January and February 2020
- additional gross payment from the employer.
The subsidy was ‘tapered’ to ensure that the net-weekly pay (additional payment and wage subsidy) of the employee did not exceed €960 net per week.
Rates in the operational phase (4 May to 31 August 2020)
New rates were applied to payrolls submitted after 4 May, with a pay date on or after that date. There was no backdating of the new rates. It meant that the wage subsidy was available to employees whose income had fallen below €76,000, when their pre-COVID salary was greater than €76,000. The new arrangements were subject to the tiering and tapering rules.
Employees previously earning up to €586 net per week
For employees whose pre-COVID average net-weekly pay:
- did not exceed €412, an 85% subsidy to a maximum of €350, was payable
- was more than €412 but not more than €500, a flat-rate subsidy of €350 was payable
- more than €500 but not more than €586, a 70% subsidy was payable, up to the maximum cap of €410.
Employees previously earning more than €586 net per week
Tapering of the subsidy applied where the additional gross payment and wage subsidy exceeded the pre-COVID average net-weekly pay. This was calculated by subtracting the additional gross payment from the pre-COVID average net-weekly pay.
The tapering ensured no employee was better off under the TWSS. In some cases, an employer paid an additional gross payment, which when added to the wage subsidy did not exceed €350 per week. In these cases, tapering of the - wage subsidy was not applied.
For employees whose pre-COVID average net-weekly pay was greater than €586 per week but not more than €960 and the additional payment equated to an amount:
- up to 60% of the employee’s net-weekly earnings, a subsidy of €350 was payable
- that was more than 60% but not more than 80% of the employee’s net-weekly earnings, a subsidy of €205 was payable
- that was more than 80% of the employee’s net-weekly earnings, no subsidy was payable.
There was no change in the basis of calculation of the subsidy amount for the extended period to 31 August 2020. The arrangements in place since the start of the operational phase on 4 May 2020 continued.
Next: Repayment to Revenue of subsidy amounts