Removing Wage Subsidy Anomalies for Low and Middle-Income Workers Welcome – ICTU

15 Apr 2020

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Today, Government announced that it is taking steps to address anomalies in the Temporary Wage Subsidy Scheme which leaves low and middle-income workers at a financial disadvantage to jobseekers in receipt of the Pandemic Unemployment Payment.

Irish Congress of Trade Unions general secretary, Patricia King said: “The news confirms  that Government has listened  to the  concerns raised by ICTU and agreed to make changes to the Temporary Wage Subsidy Scheme will end weeks of uncertainty for low-paid and middle-income earners.

“Increasing the wage replacement rate from 70pc to 85pc on earnings up to €24,400 and the value of the subsidy to €350 on earnings between €24,400-€31,000 goes a distance in doing what we asked of Government, and importantly, protects jobs and the worker-employer relationship during the emergency to facilitate a rapid recovery” said Ms King.

She added: “The trade union movement has been to the fore in advocating for a temporary wage-subsidy scheme. In little over a fortnight since its introduction, some 43,000 plus employers have registered with Revenue for the scheme, covering 255,000 workers.

“It is understandable having regard to the context in which enabling legislation was drafted that anomalies would arise. I hope that today’s announcement will spur a further growth in the uptake of the scheme and look forward to working with the relevant parties in ironing out any further irregularities.