Disclaimer
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.
Summary of Revised TWSS Scheme – April 16th, 2020
There are two underlying principles to the scheme.
Principle 1.
No employee is to be paid more than their ARNWP (Average Revenue Weekly Net Pay)
The maximum Employer Top up for Employees with an ARNWP in the range 586 to 960 is:
- €610 for Employees having their Pay reduced by 60% or more
- €755 for Employees having their Pay reduced to between 60% and 80%
This Maximum is capped at the (Employees ARNWP – Subsidy Amount).
See reference to Revenue’s Example 5
ARNWP is €800
Employer’s maximum Top up to get maximum Subsidy refund is
Reduction to 60% : €800 – €350 = €450 is maximum Top up
Reduction to between 60% – 80% : €800 – €205 = €595 is maximum Top up
See Reference to Revenue’s Example 4
ARNWP is €650
Employer’s maximum Top up to get maximum Subsidy refund is
Reduction to 60% : €650 – €350 = €300 is maximum Top up
Reduction to between 60% – 80% : €650 – €205 = €445 is maximum Top up
For Employees with ARNWP in range €500 to €586
Maximum Subsidy is 70% of ARNWP
Maximum Employer Top up before Tapering is (ARNWP * 30%)
For Employees with ARNWP in range €412 to €500
Flat Rate Subsidy of €350
Maximum Employer Top up before Tapering is (ARNWP – €350)
For Employees with ARNWP up to €412
Subsidy is 85% of ARNWP
Maximum Employer Top up before Tapering is (€350 – Subsidy)
Principle 2.
No employee is to be paid more than €960 per week in total under the scheme
Under the revised Scheme, Employees who previously had ARNWP of greater than €960 are now eligible for the scheme, provided that their Total Monies paid to them does not exceed €960 for the Week and provided that the Employee has taken a minimum 20% reduction in their ARNWP.
Employees with ARNWP of > €960 and Pay in the range 60% to 80% of their ARNWP
Maximum Subsidy Available is €205
Maximum Top up amount is €755 (€960 – €205)
Employees with ARNWP of > €960 and Pay of 60% or less of their ARNWP
Maximum Subsidy Available is €350
Maximum Top up amount is €610 ((€960 – €350)
These Maximum Subsidy and Employer Top up amounts apply regardless of how much the Employee was previously paid where the Employee has an ARNWP amount of any figure greater than €960.
Tapering.
Tapering will apply on all amounts paid to Employees where the amount paid to the Employee is greater than maximum Employer Top up amount calculated for the employee.
For example.
The employee had ARNWP of €800.
Therefore the maximum Subsidy amount available is €350 and the maximum Employer Top up amount is €450 (€800 – €350, see example above).
Each €1 paid above this Top up amount (€450), will cause the available subsidy amount paid to reduce by an equal amount. If the Top up amount paid is increased to €525 (€450+€75) then the Subsidy Paid will be reduced to €275 (€350-€75).
In this example, if a Top up amount of €800 is paid by the Employer, then no Subsidy will be paid and you will need to set the Employee’s PRSI Class back to the their normal PRSI Class (A1/ S1).
This suggests that the Employer should not Top up the Employee’s pay by any more than the Maximum Top up amount, as both the Employer and Employee will lose out.
Top up Amounts greater than the Employee’s ARNWP or €960, whichever is lower, make the Employee ineligible under the scheme.