Wage Subsidy Scheme Expanded

Taoiseach Micheál Martin and the Minister for Social Protection Dara Calleary recently announced the expansion of the Wage Subsidy Scheme which will help more disabled people to get and retain work. The scheme encourages employers to hire people with disabilities by providing financial support. This can help cover the cost of adapting a role for the employee. Employers can get a subsidy of between €6.30 to €9.45 per hour, depending on the number of workers employed under the scheme.

The changes being announced today are a result of the recommendations from a review of the Wage Subsidy Scheme, which was carried out by the department and published in August 2024. Under Budget 2024, an additional €3.7 million was allocated to the scheme to expand and improve it.

The reformed scheme now implements the six recommendations made in the review:

• Reduce the minimum required hours for the scheme. The minimum hours requirement to avail of the subsidy has been reduced from 21 hours to 15 hours to enable those with more limited work capacity to be included.
• Remove the term ‘productivity deficit’ from the scheme. The scheme no longer focuses on a productivity deficit but on the need to adapt the role to a disabled person’s ability.
• Expand the scheme beyond recruitment to include retention of people returning to work. This is particularly important as most disabilities are acquired. People who return to work on Partial Capacity Benefit and who have acquired their disability or health condition in the previous 12 months are now eligible.
• Expand the scheme to the community and voluntary sector and commercial state-sponsored sector. This will increase employment opportunities for disabled people by expanding the scheme beyond private sector employers to all non-public sector employers.
• Review the subsidy rate on a regular basis. This will ensure that the subsidy continues to sufficiently support employers. The subsidy rate will be reviewed at least every three years.
• Promote and improve knowledge of the scheme. The Minister has today launched a nationwide publicity campaign for the Wage Subsidy Scheme to promote and improve knowledge of the scheme.

For questions, please contact SFA Public Affairs Lead, Jonathan McDade - Tel: 01 605 1688 or Email: jonathan.mcdade@sfa.ie.