Guide – Employment Wage Subsidy Scheme (EWSS) in Ireland
The Employment Wage Subsidy Scheme (EWSS) is one of the most significant support measures
introduced by the Irish government to help businesses navigate the economic challenges brought on by
the COVID-19 pandemic. Designed to support employers in retaining employees during times of reduced
business activity, the EWSS has been a lifeline for many companies across Ireland. This blog will explore
everything you need to know about the EWSS, including its purpose, eligibility criteria, application
process, payment rates, compliance requirements, and much more.
1. Overview of the Employment Wage Subsidy Scheme (EWSS)
The EWSS was introduced as a successor to the Temporary Wage Subsidy Scheme (TWSS), which was
implemented at the height of the pandemic. While the TWSS was primarily focused on providing
immediate financial relief, the EWSS aims to offer more sustained support as businesses work towards
recovery. The primary goal of the EWSS is to maintain the link between employers and employees,
preventing layoffs and supporting businesses in weathering the economic storm.
The scheme provides a wage subsidy to employers, enabling them to pay their employees even when
business activity is significantly reduced. This has helped to preserve jobs and reduce the need for
redundancies during difficult times.
2. Eligibility Criteria for EWSS
One of the most important aspects of the EWSS is determining whether your business qualifies for the
scheme. The eligibility criteria are designed to ensure that only businesses genuinely impacted by the
pandemic receive support. Here are the key conditions:

Tax Clearance: The business must have a valid tax clearance certificate.

Revenue Decline: The business must demonstrate that its turnover or customer orders have
declined by at least 30% due to the pandemic. This comparison is made against the same period
in 2019.

Registered Employer: The employer must be registered with the Revenue as an employer and
must have PAYE/PRSI responsibilities.

Active Business: The business must be operational, and employees must be on the payroll. The
scheme is not available for businesses that have ceased trading or have been liquidated.
3. How to Apply for EWSS in Ireland
Applying for the EWSS involves several steps, but the process is straightforward if you follow the
guidelines provided by the Revenue. Here’s a step-by-step guide:
1. Register for EWSS: Before you can claim subsidies, you must register for the EWSS through the
Revenue Online Service (ROS). Registration is mandatory, and claims can only be made after
successful registration.
2. Calculate Eligibility: Ensure that your business meets the 30% decline in turnover or orders. This
calculation should be documented as it may be requested by Revenue for verification purposes.
3. Submit Payroll: Once registered, you can submit your payroll as usual through your payroll
software or via ROS. The EWSS subsidy will be calculated automatically based on the gross pay
submitted.
4. Receive Payment: Subsidy payments are made directly to the employer’s bank account, typically
within a few days of payroll submission. These payments help cover the cost of employee wages.
4. EWSS Payment Rates and Calculations
Understanding how the EWSS payments are calculated is crucial for managing your business finances.
The subsidy is based on the gross pay of each employee and is capped at a certain amount. As of the
latest guidelines, here’s how the payment rates are structured:

Gross Pay Between €151.50 and €202.99 per week: Subsidy of €151.50.

Gross Pay Between €203 and €1,462 per week: Subsidy of €203.

Gross Pay Less than €151.50 or More than €1,462 per week: No subsidy.
These rates are designed to provide meaningful support to employers while ensuring that the subsidy is
targeted at those who need it most. The subsidy is calculated on a per-employee basis and is paid to the
employer, who then passes it on to the employee through their regular payroll.
5. EWSS Compliance and Reporting Requirements
Compliance with the EWSS guidelines is essential to avoid penalties or the repayment of subsidies. Here
are some key compliance and reporting requirements:

Revenue Audits: The Revenue may audit your business to ensure that you meet the eligibility
criteria and have correctly calculated the subsidy. Keep detailed records of your revenue decline
calculations and payroll submissions.

Regular Reviews: Businesses must regularly review their eligibility for the scheme. If your
turnover improves and no longer meets the 30% decline threshold, you must cease claiming the
subsidy.

Correct Payroll Processing: Ensure that your payroll submissions are accurate and that the
subsidy is passed on to employees as intended. Incorrect submissions can lead to delays in
payment or potential penalties.

Tax Implications: The EWSS payments are subject to PAYE, USC, and PRSI, so it’s important to
ensure that these deductions are made correctly.
6. Updates and Changes to the EWSS
The EWSS has undergone several updates since its introduction, with changes to payment rates,
eligibility criteria, and deadlines. Staying informed about these updates is crucial for businesses relying
on the scheme. Here are some of the recent changes:

Extended Duration: The scheme has been extended several times to continue supporting
businesses as the economic situation evolves.

Adjusted Payment Rates: The payment rates have been adjusted to reflect changing economic
conditions and the level of support needed.

Sector-Specific Support: Some sectors, such as hospitality and tourism, have received additional
support due to the disproportionate impact of the pandemic on these industries.
It’s essential to keep an eye on announcements from the Revenue and the Department of Finance to
stay up to date with the latest changes.
7. EWSS vs. Other Wage Subsidy Schemes
The EWSS is one of several wage subsidy schemes introduced in response to the pandemic. Comparing
the EWSS with other schemes can help businesses determine which one best suits their needs. Here’s
how the EWSS stacks up against the Temporary Wage Subsidy Scheme (TWSS):

Duration: The TWSS was a short-term emergency measure, while the EWSS is designed for
longer-term support.

Payment Rates: The TWSS had a more complex payment structure, with subsidies varying based
on different income brackets. The EWSS has a simpler, more straightforward rate structure.

Eligibility: The TWSS was available to a broader range of businesses at the height of the
pandemic, while the EWSS has more stringent eligibility criteria.

Flexibility: The EWSS allows for more flexibility in managing payroll, as employers can include
new hires in their claims, which was not possible under the TWSS.
8. Case Studies: Businesses Benefiting from EWSS
Many businesses across Ireland have benefited from the EWSS, helping them retain staff and continue
operations during challenging times. Here are a few examples:

Retail Sector: A mid-sized retail chain saw a 40% decline in turnover during the pandemic. By
utilizing the EWSS, they were able to keep their employees on payroll and avoid layoffs, ensuring
that they were ready to reopen fully once restrictions eased.

Hospitality Industry: A small hotel experienced a significant drop in bookings due to travel
restrictions. The EWSS allowed them to maintain a core team of staff, enabling them to continue
operating at a reduced capacity.

Manufacturing Company: A manufacturing firm faced supply chain disruptions that impacted
production. With the help of the EWSS, they could retain their skilled workforce and resume full
operations once conditions improved.
These case studies highlight the versatility of the EWSS in supporting businesses across various sectors.
9. Impact of EWSS on the Irish Economy
The EWSS has had a profound impact on the Irish economy, helping to stabilize employment levels and
support businesses through unprecedented challenges. By maintaining the employer-employee
relationship, the scheme has prevented a surge in unemployment and provided businesses with the
breathing room needed to navigate the pandemic.
As businesses begin to recover, the EWSS continues to play a critical role in the Irish economy’s
resilience. The scheme’s ongoing support is vital for ensuring a sustainable recovery and minimizing the
long-term economic impact of the pandemic.
10. Frequently Asked Questions about EWSS
Here are some common questions that businesses often have about the EWSS:

Can new employees be included in the EWSS? Yes, employers can claim the EWSS subsidy for
new employees hired after the scheme began.

What happens if my business no longer meets the 30% decline threshold? If your business’s
turnover improves and no longer meets the threshold, you must cease claiming the subsidy.

Is the EWSS subsidy taxable? The subsidy itself is subject to PAYE, USC, and PRSI, so it must be
processed correctly through payroll.

Can directors of a company qualify for the EWSS? Proprietary directors can qualify for the
EWSS, provided they meet specific conditions set out by Revenue.

If you are looking for payroll services Ireland.
Conclusion
The Employment Wage Subsidy Scheme (EWSS) has been an invaluable resource for businesses across
Ireland, providing essential support during one of the most challenging periods in recent history. By
understanding the scheme’s intricacies— from eligibility criteria and application processes to compliance
requirements and payment calculations—businesses can effectively utilize the EWSS to sustain their
operations and safeguard jobs.
As the Irish economy continues to recover, the EWSS will remain a crucial component of the support
structure for businesses, helping to ensure a smooth transition to a post-pandemic landscape. Staying
informed and compliant with the scheme’s requirements is key to maximizing the benefits and
contributing to Ireland’s economic resilience.
Resource URL: https://osservi.ie/employment-wage-subsidy-scheme-ewss-in-ireland/