Questions and Answers

Will Budget 2022 affect the EWSS in any way?

I run a small hairdressers and currently have 2 employees. I am availing of the Employment Wage Subsidy Scheme (EWSS). Will Budget 2022 affect the EWSS in any way?

Firstly, the good news is that the EWSS, which was due to expire on 31 December 2021, has been extended out to 30 April 2022.

However, the rates are going to be reduced over the coming months as per the below so you should plan out how these changes will affect your cashflow.

You will have to continue to review your eligibility to avail of the scheme. There were no changes to the qualification criteria - you will continue to need to show a 30% reduction in turnover/customer orders in the full year 2021 as compared to the full year 2019.

Rates of EWSS

current rates to remain in place until 30 November 2021;
for the three months December 2021 to February 2022 there will be two subsidy rates namely €151.50 and €203 per employee per week;
for the two months March 2022 and April 2022, a single flat rate of €100 per week will apply;
the existing reduced rate of Employers’ PRSI (0.5%) will continue to apply until the end of February 2022. The full Employers’ PRSI contribution will be reintroduced from 1 March 2022 until the scheme ends;
scheme to conclude on 30 April 2022.

The scheme will close to new employer entrants with effect from 1 January 2022.

Date published 12 Oct 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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