Irish Government announces extension of EWSS

The planned cut to the Employment Wage Subsidy Scheme (EWSS) has been reversed by the Government, following its decision to introduce new Covid-19 restrictions.

The restrictions were imposed on 7 December and are due to remain in place until at least 9 January. They mainly impact on restaurants, bars, indoor venues and household gatherings, however they have a knock-on effect on other parts of the Irish economy.

The higher EWSS rate will now stay in place until the end of January, followed by planned reductions until the end of the scheme on 30 April. The full EWSS rate is available for all businesses, but they must show a 30% reduction in turnover.

Following the announcement of the latest Covid restrictions, the Finance Minister Paschal Donohoe said the Government intended to develop further targeted support for those sectors that have been most affected by the restrictions and to have this support in place quickly.

“Upon further analysis of the proposal by my Department and the Revenue Commissioners, it became clear that it would be complex to develop an appropriate and effective scheme in the immediate term. Instead, I have decided to extend the enhanced rates of EWSS for the months of December and January to give certainty to businesses when they need it most.”

The Covid Restrictions Support Scheme (CRSS) is also to be extended from the end of December to 31 January 2022. An amendment to the Finance Bill 2021 will allow the CRSS to be further extended by the Government if required. 

Meanwhile, the commercial rates waiver has been extended until the end of March 2022.