Below please see letter from Minister Roderic O’Gorman in relation to the extension of the Employment Wage Subsidy Scheme (EWSS).
I am writing to update you on the recent developments concerning the Employment Wage Subsidy Scheme (EWSS).
In line with Economic Recovery Plan published by Government today, the EWSS has been extended until 31 December 2021 (see https://www.gov.ie/en/publication/49b23-overview-of-economic-recovery-plan-2021).
For Quarter 3, the EWSS will be paid at enhanced rates and reduced employer PRSI rates will continue to apply. Arrangements for EWSS in Quarter 4 are to be agreed in September.
As many of you know, when the EWSS was introduced in August 2020, I negotiated a special arrangement for registered early learning and care (ELC) and school-age childcare (SAC) services to be exempt from the EWSS turnover test, which confers eligibility to this support. The Government agreed to this special arrangement for the sector in recognition of the important role played by ELC and SAC services in providing
learning and care for children, as well as supporting families to balance work success with family responsibilities.
I can confirm today that these special arrangements for the ELC and SAC sector will be extended for Quarter 3 2021. At enhanced rates, services will continue to have up to 80% of their payroll costs or 50% of their operating costs covered for this quarter.This extension to the EWSS will allow ELC and SAC services to operate sustainably in a context of lower occupancy and higher delivery costs arising from public health requirements, without the need to increase fees charged to parents. All registered ELC and SAC services with employees are eligible for this support. No confirmation can be given in relation to the continuation of these special arrangements for the ELC/SAC sector in Quarter 4 at this point. Officials at the DCEDIY will engage with the Department of Finance on this in the context of wider proposals for the EWSS in Quarter 4.
Wishing you and your staff the very best with the continued safe operation of your service to children and families.
With kind regards,
Roderic O’Gorman T.D.
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