Changes to Wage Subsidy Scheme

Changes will be made to the Wage Subsidy Scheme following a comprehensive review, it has been announced by the Minister for Social Protection, Heather Humphreys.

Among them, the minimum hours have been reduced; while the scheme is to be extended to the community and voluntary sector.

The Wage Subsidy Scheme aims to encourage private sector employers to offer substantial and sustainable employment to people with a disability. It does this by offering employers a subsidy.

It pays a minimum subsidy rate of €6.30 an hour to the employer, which can increase to €9.45 per hour depending on the number of people employed under the scheme.

The review’s recommendations are based on stakeholder feedback as part of the public consultation process. The review also draws on research and best practice from other countries.

The review makes six recommendations:

1.Reduce the required minimum hours of the scheme from 21 to 15 hours per week (in April 2024, this recommendation was implemented).

2.Remove the terms ‘productivity deficit’ and ‘productivity shortfall’ from the scheme.

3.Expand the scheme to employers who employ somebody returning to work in receipt of Partial Capacity Benefit.

4.Expand the scheme to the community and voluntary sector and commercial state-sponsored sector.

5.Review the subsidy rate on a regular basis.

6.Promote and improve knowledge of the scheme.

Announcing the publication of the review today, Minister Humphreys said: The Wage Subsidy Scheme is a key support for employers to hire people with disabilities, and I commissioned this timely review to find ways to expand and improve it.

“The review is based on extensive stakeholder engagement and consultation. I would like to thank every individual and organisation who took the time to contribute to the public consultation."

Over 1,200 responses were received as part of the public consultation process.

“It is clear from your feedback that we need a flexible and accessible scheme that works better for people with a disability and for employers.

“It is so important that we support people with disabilities to take up employment if they are able to work. Having a job has many social, economic and health benefits. It gives people more independence and control over their own lives. Supporting employers is critical to providing disabled people with these opportunities.”

The Department of Social Protection will work over the coming months to implement the recommendations in the report. The updated scheme will be in place from January 2025.

The review of the Wage Subsidy Scheme is available here.