Wage subsidy scheme amended to include parents who were out on leave

Women and men left out of the temporary wage subsidy scheme due to maternity or paternity leave will have their payments backdated to March.
Wage subsidy scheme amended to include parents who were out on leave

Finance Minister Paschal Donohoe: Cabinet had signed off on changes to wage subsidy scheme to accommodate parents returning from maternity or adoptive leave.
Finance Minister Paschal Donohoe: Cabinet had signed off on changes to wage subsidy scheme to accommodate parents returning from maternity or adoptive leave.

Women and men left out of the temporary wage subsidy scheme due to maternity or paternity leave will have their payments backdated to March.

Finance Minister Paschal Donohoe confirmed on Friday that the Cabinet had signed off on changes to the scheme to accommodate those returning from maternity or adoptive leave.

The Government introduced the scheme at the beginning of the Covid-19 pandemic in order to save jobs as lockdown restrictions shuttered businesses, by subsidising up to 70% of an employee's salary.

Shortly after the scheme was launched, an anomaly appeared that certain employees, returning from maternal or paternal leave, weren't able to go back on the payroll via the wage subsidy scheme, and therefore were only eligible for the €350-a-week Pandemic Unemployment Payment.

"My own department, together with the Revenue Commissioner, have been looking at a number of ways to address this issue in a way that ensures consistent treatment with other employees that were on the payroll in January and February," said Mr Donohoe.

"As a result of this work, the Cabinet agreed an important change to the scheme to ensure that workers are not denied access.

I'm pleased to confirm that a change to the scene has now been made to accommodate the salaries of those who have returned to work after a period of adoptive or maternity leave, and therefore were not on the payroll.

"The amendments will be legislated for later in the year, as part of the usual finance bill process, but in the interim, the Revenue Commissioner has confirmed that this provision will be implemented with effect from the date of the commencement of the wage subsidy scheme, March 26.

"The Government is making this important change because we want to ensure that citizens are not denied access to this scheme because of their personal circumstances.

"I want to highlight to employers that a manual process will be adopted. It will require employers to contact the Revenue Commissioner, as soon as possible."

Employers are encouraged to contact Revenue when the update is launched so that the process of including these employees’ salaries can begin.

The system updates should be operational from June 12.

The National Women’s Council of Ireland (NWCI), which took the matter to the Irish Human Rights and Equality Commission, welcomed the proposal but criticised the initial refusal to deal with the issue and the length of time it took to reach a resolution.

Director Orla O’Connor said the news was long overdue. "It will come as a relief to the many women for whom this has been causing considerable distress," she said.

“We regret that women returning from maternity leave were excluded from the Scheme and in addition the Minister could not rectify the issue when it was first raised with him over a month ago. Women returning to work from maternity leave are a distinct category of workers with special protections, and should have been respected and rectified by the minister as soon as this anomaly was pointed out.”

more articles

Leo Varadkar still has ‘some’ texts from pandemic period Leo Varadkar still has ‘some’ texts from pandemic period
Taoiseach visit to the US Leo Varadkar still has ‘some’ texts from covid pandemic period
Nolan says lessons need to be learned from Covid inquiry Nolan says lessons need to be learned from Covid inquiry

More in this section

National Risk Assessment for Ireland Tánaiste urges Israel ‘to show humanity’ and allow more aid into Gaza
Lego set based on RNLI lifeboat could soon become a reality Lego set based on RNLI lifeboat could soon become a reality
Travel Stock - Geneva - Switzerland UN human rights body calls for repeal or amendment of Troubles legacy laws
War_map
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited