Wage Subsidy Scheme must be rectified to include seasonal workers - Donegal TD says

Pearse Doherty commends decision of Cllr. Chris MacManus

Pearse Doherty TD

Donegal TD Pearse Doherty has written to the Minister for Finance regarding the operation of the Temporary Wage Subsidy Scheme for workers in seasonal employment.

The scheme is based on employees' January and February payroll. Employers can make additional payments, but if those exceed employees’ net January/February pay by a certain amount, the wage subsidy is removed by the same figure.

This could result in seasonal workers moving to full-time hours this summer being deemed ineligible for the scheme.

The issue is having an effect on many Donegal based workers and employers who rely on seasonal work which normally accompanies the tourism season and Summer months.

The Donegal TD said: “Today I wrote to the Minister for Finance regarding the operation of the Temporary Wage Subsidy Scheme and how it will affect workers in seasonal sectors that are reopening for business this summer.

“Under the operation of the scheme, the subsidy is based on January and February 2020 payroll submissions.

“While the employer can make additional payments to an employee above the subsidy, if they make additional payments above the employee’s net pay in January/February 2020, the wage subsidy is reduced by that amount.

“This could have huge ramifications for employers and workers in seasonal sectors this summer.

“For a seasonal worker who typically works part-time during off-peak times such as January, but full-time in the summer months, their employer will not be able to pay them for full-time hours using the Wage Subsidy Scheme.

“Faced with this, employers could keep these seasonal workers on part-time hours this summer.

"This will not only hurt businesses in seasonal sectors, but will cut the incomes of workers and families who work in seasonal sectors.

“I have written to the Minister for Finance seeking clarity on this issue, and have proposed that for such seasonal workers, payroll submissions in the 2019 summer months can be used as a basis to calculate the wage subsidy under the scheme.”

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