The Operational Phase applies to any TWSS submissions submitted to Revenue on or after 4th May 2020. The Operational Phases ensures that the Subsidy paid to employers will be based on each individual employee’s Average Revenue Net Weekly Pay (ARNWP) and the gross pay as reported by the employer in the payroll submission, subject to the maximum weekly tax-free amounts.
The Operational Phase will include an Employer CSV File download, where Revenue will calculate each employee’s Maximum Weekly Wage Subsidy based on the employee’s ARNWP and will provide this, along with other necessary information, to each employer in respect of each active employee.
The new rates of Subsidy in the Operational Scheme are as follows:
Employees earning up to €586 net per week
- An 85% subsidy shall be payable in the case of employees whose previous average net weekly pay does not exceed €412. There is a tapering exception in relation to the gross pay top up in this range. Where the ARNWP does not exceed €412, the employer may pay an additional gross payment such that the gross pay plus the temporary wage subsidy does not exceed €350 per week. There is a tapering exception in relation to this
- A flat rate subsidy of up to €350 shall be payable in the case of employees whose previous average net weekly pay in more than €412 but not more than €500.
- A 70% subsidy shall be payable in the case of employees whose previous average net weekly pay is more than €500 but more than €586, with the minimum of €410 applying.
Employees earning in excess of €586 net per week but not more than €960 per week
For employees whose average net weekly pay is greater than €586 per week but not more than €960 per week, the temporary wage subsidy shall not exceed €350 per week, and shall be calculated with reference to the gross salary paid by the employer and its effect on net average wages as follows:
- A subsidy of €350 shall be payable to employees with average net weekly pay greater than €586, where the employer pays sufficient gross salary which equates to an amount up to 60% of the employee’s net weekly earnings;
- A subsidy of €2015 shall be payable to employees with average net weekly pay greater than €586,where the employer pays sufficient gross pay salary which equates to an amount that is no more than 60% but not more than 80% of the employee’s net weekly earnings;
- No subsidy shall be payable to employees with average net weekly pay greater than €586, where the employer pays sufficient gross salary which equates to an amount that is more than 80% of the employee’s net weekly earnings.
Employees earning more than €960, and current gross pay is below €960 perweek
The wage subsidy is available to support employees whose ARNWP is more than €960, and their current gross pay is below €960 per week. Where the employee’s current gross pay, as reported in the payroll submission, represents:
- Not more than 60% of the ARNWP, a subsidy of up to €350 is applicable.
- More than 60% and not more than 80% of the ARNWP, a subsidy of €205 is applicable.
- More than 80% of the ARNWP, no subsidy is payable and J9 PRSI class should not be applied. For such employees, the maximum additional gross payment an employer can make, to receive the full subsidy, is the difference between €960 and their maximum weekly wage subsidy.