COVID-19: Amendments to PUP & EWSS

COVID-19: Amendments to PUP & EWSS

With Monday night’s Covid-19 announcement and a move to level 5, the Irish Government has made the decision to allow construction to remain operating under the strictest safety procedures. The following services relating to construction and development will be allowed: 

• construction or development work and the provision of support services relating to construction and development work
• the repair, maintenance and construction of road, rail and utility infrastructure
• the supply and delivery of maintenance and repair services to businesses and places of residence (including electrical, gas, plumbing, glazing and roofing services).

With that the CIF Industrial Relations & Employment Services have announced amendments to the Income Support Schemes which are as follows:

1. Employment Wage Support Scheme (EWSS)

The EWSS provides support to employers across all sectors who are negatively affected by Covid-19. The qualifying turnover criteria for the scheme has been reduced to allow more businesses to access this support while maintaining an employment link with their workers during the pandemic. Employers will now have to be able to demonstrate that Covid-19 caused a reduction in turnover or customer orders of 25% in the period from 1 July and 31 December 2020 when compared to the same corresponding period in 2019. Employers availing of the scheme must continue to undertake a review on the last day of every month to ensure the company continues to meet the eligibility criteria.

The rate of subsidy provided under the scheme has been enhanced to better support businesses dealing with Covid19 restrictions. The EWSS rates will be aligned with the rates of payment under PUP (i.e. up to €350 per week) effective from the next payroll date after 19 October, as set out below.

The scheme is operated by the Revenue Commissioners and eligible employers will receive a flat-rate subsidy of up to €350 per week per qualifying employee from Revenue. All normal deductions i.e. income tax, USC and employee PRSI should be made. However, a 0.5% rate of employer’s PRSI will apply for employments that are eligible for the subsidy. The level of the EWSS subsidy payment will depend on the employee’s gross pay per week as follows:

2. The Pandemic Unemployment Payment (PUP)

Workers who have been placed on temporary lay-off or made redundant due to Covid-19 are entitled to the PUP. The payment is available to employees and self-employed workers. The payment will end in April 2021 and between now and then, there will be a gradual reduction in individual payment levels linked to a worker’s previous income. These reductions will bring payments in line with existing social welfare levels over time. The scheme is open to new applicants until the end of 2020. As announced by government last night, the new payment structure for the PUP is as follows, with the rate of €350 restored to those who were earning in excess of €400 per week:

This change to payment rates will apply for payments issued from Tuesday 27th October (PUP is paid weekly on a Tuesday) in respect of all existing and new applicants. New applicants are being urged to apply online at www.mywelfare.ie . If you require clarification on the above, please feel free to contact the CIF IR Department at 01-4066000.