Phase 2 (Operational Phase)

On 15 April 2020, Minister Donohue announced further updates to the Temporary Wage Subsidy Scheme (TWSS). These changes will come into effect no sooner than 5 May 2020. The position for employees with an average net weekly pay (ANWP) of less than €586 will be:

ANWP Subsidy
< €412 per week 85% of their ANWP*
Between €412 and €500 €350
Between €500 and €586 70% of their ANWP

*If an employer wishes to bring the employee’s current weekly pay up to €350, the standard tapering provisions will not be imposed on the subsidy payment.

In respect of employees with an ANWP greater than €586, the subsidy will be:

Gross top up payment paid by employer Subsidy
Up to 60% of ANWP €350
Between 60% and 80% of ANWP €205
>80% of ANWP No subsidy


Pre Covid-19 ANWP >€960

Employees’ whose ANWP was greater than €960 before the pandemic and whose current weekly pay is now less than €960, may qualify for the TWSS provided their gross salary has decreased by at least 20%. These changes apply for payroll submissions made on/ or after 16 April 2020, with a pay date on/ or after the 16 April 2020. In respect of employees paid on a monthly basis, the subsidy payments can be received for the full month of April. However, the aggregate of subsidy payment received plus any additional top-up payments advanced by the employer cannot exceed €960 per week. Where the gross pay, as reported in the payroll submission, represents a reduction in the ANWP by:

  • less than 20%, then no subsidy is payable;
  • between 20% and 39%, then a subsidy of up to €205 is payable;
  • 40% or more, then a subsidy of €350 is payable.


Late Submissions

Previously, employers who failed to submit their February 2020 payroll submission on/or before 15 March 2020 were excluded from qualifying from the TWSS. Revenue have now relaxed this provision and such employers’ will now qualify provided the following conditions are met:

  • The employees were included on the employer’s payroll on 29 February 2020;
  • The February 2020 payroll submission was filed on/ or before 1 April 2020; and
  • Payroll submissions for all previous periods were filed on/ or before 15 March 2020.

DYCA -Wage Subsidy Childcare Scheme

The Department of Children and Youth Affairs (DYCA) have introduced additional support measure to address the specific needs of Early Learning and Care (ELC) and School Age Childcare (SAC) providers. Such providers can use these additional support measures as a contribution towards overheads and advance top-up payments to their employees. To qualify for the scheme the applicants must be registered providers within the meaning of the Child Care Act 1991 and were contracted with the DYCA to provide ELC and SAC programmes on 12 March 2020.

For payroll submissions made on/or after 20 April 2020, with a pay date on/ or after the same date the ELC and SAC providers are entitled to make a top-up payment to their employees, to bring the employee’s current weekly wage up to €350 (before tax). If such a top-up payment is advanced, the standard tapering provisions will not be imposed on the subsidy payment.

Please note that these changes are only applicable from 20 April up until Phase 2 comes into effect. Thereafter, employees working in this sector will be entitled to the same subsidy payments as all other employees on the TWSS. If ELC and SAC providers already applied for the TWSS any payroll submission filed before 20 April 2020 cannot be amended. However, if such top-up payments were advanced to employees on payroll submission since 6 April 2020, the providers will be reimbursed by the DYCA.


*This leaflet sets out our understanding of the COVID-19 Temporary Wage Subsidy Scheme based on the guidance notes currently published on Revenue’s website.  As details of the scheme are still being finalised, we expect additional guidance notes to be published in the coming week.