Please note that while every effort has been made to ensure the accuracy of the information and detail included in this guide, it is subject to change and revision. Please consult Revenue / DEASP sources for detailed information on the operation of the scheme. The Revenue’s National Employer Helpline is +353 (01) 738 3638.


Must be severely impacted by the Covid 19 Outbreak such that it impairs their ability to pay wages and salaries in the normal way.

Must apply for the scheme and complete the required declaration. Go to ROS

Must be up to date in their Payroll Returns.

Must retain the employees on their Payroll.


Must continue to be employed by the Employer – the same Employer Registration number.

Must have been paid by the Employer at least once during February and have been included in a PSR return to Revenue for that period by March 15th.

Employee must have a PPSN which was used in PSR returns to Revenue covering February and submitted to Revenue by March 15th.

Must have earned an average of less than €960.00 per week over the period January 1st to February 29th. The €960 figure relates to Average Revenue Net Weekly Pay (ARNWP) which is basically Revenue Gross Pay less (Income Tax + USC + EE PRSI) Deductions averaged over the Jan – Feb period.

Employees who previously earned more than €960 per week across Jan / Feb but who have a reduction in Pay of at least 20% AND who are now receiving €960 or less in total payments are eligible for the scheme as of April 16th. Total Payments are the sum of Subsidy and Employer Top Up amounts.


The scheme will operate for a 12 week period from March 26th. After this 12 week period, the Scheme may be terminated, extended or amended.

The Scheme operates slightly differently depending on the Average Revenue Net Weekly Pay of the Employees and also whether the scheme is being applied before or after May 4th (previously was April 20th).

Transitional Phase – March 26th to May 3rd.

Between March 26th and May 3rd, the Employer must calculate the Average Revenue Net Weekly Pay for each Employee they are paying. From May 4th the ARNWP amount for each employee will be calculated by Revenue and communicated by them to each Employer. The period up to May 4th is to provide Revenue time to calculate and validate the amounts allowable for each employee and to communicate this detail to every employer.

Depending on the ARNWP amount of the employee, the employer can receive a wage subsidy payment to help fund payments to the employee.

Where the employee’s ARNWP is less than €586, the wage subsidy payment paid to the employer is the lower of €410 or 70% of the employee’s ARNWP amount. An employee with an ARNWP of €586 would get a wage subsidy payment of €410, while an employee with an ARNWP of €300 would receive a wage subsidy payment of €210 (70% of €300). Any additional Top up amounts paid by the employer could reduce the subsidy amounts paid – see below.

Where the employee’s ARNWP is greater than €586 and up to €960, the employer will be refunded a wage subsidy payment of up to €350 per week for the employee. This is less than 70% of the employee’s ARNWP but that is the amount that is subsidised.

No Income Tax, PRSI or USC will be applied to the wage subsidy amount paid to employees –
employees are to get the full figure.

Employers are encouraged to “top up” the employees’ wages by paying additional amounts necessary to bring the employees total gross payment for the period to an amount equal to their ARNWP amount. With an ARNWP of €750 and a maximum subsidy of €350, the employer is encouraged to top up the payment to the employee by €400. But be careful, if the employer pays the employee in this example, more than €400, the subsidy amount available will reduce such that the employee CANNOT receive more than their ARNWP (€700) while under the scheme.

The employee is expected to receive the full amount of whatever wage subsidy payment is made to the employer for them i.e. no deductions should be made from the wage subsidy payment for LPT, Health insurance, Tax Saver or any other deductions. In the latest revision of the scheme, deductions can be made from the Wage Subsidy amount but only with the express consent of the employee.

Employees previously earning more than €960 per week.

A revision to the scheme (April 16th) means that employees who previously had an ARNWP of more than €960 but have taken a cut in pay of 20% or more are now eligible for the scheme provided that their reduced pay (Total pay is Subsidy plus Top Up amount) is less than €960 per week.

Employees with a 20% – 40% reduction in pay are eligible for a subsidy of €205 provided that the sum of their Top up amount plus the subsidy is less than €960. In effect, this means the employee can receive no more than €755 from the employer and remain eligible.

For employees with a 40% or more reduction in pay, they are entitled to a subsidy of up to €350. Again, the sum of the Wages Top up plus the Subsidy cannot exceed €960, so the maximum Top up amount that can be paid is, in effect, €610 per week.

Operational Phase – from May 4th.

There are a number of differences between the Transitional and Operational phases of the scheme.

Transitional Phase Operational Phase
Effective Date March 26th to May 3rd May 4th to June 18th
Calculation of ARNWP Calculated by Employer Provided by Revenue
Maximum Subsidy allowed
Employees ARNWP < €412 70% up to €410 85% up to €350
Employees ARNWP €412 – €500 70% up to €410 €350 flat payment
Employees ARNWP €500 – €586 70% up to €410 70% up to €410
Employees ARNWP €586 – €960 Up to €350 Up to €350
Employees ARNWP > €960

€350 where Pay reduced by
40% or more of ARNWP

€205 where Pay reduced by
20% to 40% of ARNWP

€0 where Pay reduced by less
than 20% of ARNWP

Prior to April 16th the Subsidy
was €0 – Employee was not eligible

€350 where Pay reduced by 40%
or more of ARNWP

€205 where Pay reduced by 20%
to 40% of ARNWP

€0 where Pay reduced by
less than 20% of ARNWP

The calculation of the Subsidies that can be claimed is pretty much the same as under the Transitional Phase. There are a few differences.

All Employees with an ARNWP of more than €586 will be treated in the same way. The absolute maximum that can be paid in total to any such employee is €960 per week. Above this amount, the employee is no longer eligible for the scheme.

For all employees who had an ARNWP of €586 or more, in order to obtain the maximum subsidy amount the maximum Top Up amount that can be paid by the employer is either