COVID-19 Income Support Scheme

The Government has today announced a range of measures aimed at tackling the impact of COVID-19.

The new COVID-19 Income Support Scheme (“the Scheme”) aims to provide financial support to employees, self employed persons and companies.  The Scheme is expected to be in place for 12 weeks.

Details of the scheme are as follows:

• The COVID-19 Pandemic Unemployment Payment (click here to read more) will be increased from €203 per week to €350 per week. Self-employed persons will be eligible for this payment directly from the Department of Employment Affairs and Social Protection;
• Similarly, the COVID-19 Illness Payment will be increased from €203 per week to €350 per week; and
• A temporary wage subsidy will be available to assist companies in paying their employees. Companies can avail of a subsidy of 70% of an employee’s take home weekly pay up to a maximum weekly tax-free amount of €410.

To avail of the Scheme, employers must declare to Revenue that they have experienced a minimum reduction of 25% in turnover and an inability to pay normal wages and other outgoings.

In addition to the Scheme, the Government is introducing legislation to protect renters by preventing the termination of residential tenancies and increases in rent during the COVID-19 pandemic. (click here to read more)

In relation to mortgage holders, the banking sector have agreed a number of measures to assist those impacted by the COVID-19 pandemic including payment breaks.

How we can help

If you have any queries or concerns, or would like to discuss the above in further detail, please feel free to contact Richard Lee, Partner, BHSM on 01 440 8300 / rlee@bhsm.ie.

This article is for general information purposes.  Legal advice must be obtained for individual circumstances.  Whilst every effort has been made to ensure the accuracy of this article, no liability is accepted by the author for any inaccuracies.