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Minister Paschal Donohoe says anomalies have arisen in the temporary wage subsidy scheme. Leon Farrell

'Anomalies have arisen': Donohoe admits 'gap' in wage subsidy scheme for low paid workers

Sinn Féin says workers are being penalised in some cases.

FINANCE MINISTER PASCHAL Donohoe has admitted there’s a “gap” in the temporary wage subsidy scheme that sees some workers worse off if they’re kept on by their employers.

Employers who sign up are required to pay their employees no more than 70% of their net weekly wage, which for many is less than the €350 they would receive through the Covid-19 Pandemic Unemployment Payment.

Donohoe admitted today that the wage subsidy scheme was set up quickly and that “anomalies” were always going to arise. 

Today, he promised the government is looking at the issue.

The scheme aims to keep employees on the books for the duration of the crisis by paying a subsidy equal to up to 70% of an employee’s take home pay, up to €410 a week.

The initiative was brought in to prevent workers from being let go. 

However, Sinn Féin Finance spokesperson Pearse Doherty has called for a reform of the scheme “so that workers are not penalised by receiving the wage subsidy rather than the COVID-19 Pandemic Unemployment Payment”.

Sinn Féin’s David Cullinane said the party is engaging with ICTU and with Mandate unions in relation to a number of cases. 

The party has called for a minimum payment of €350 per week to be introduced to the scheme.

Asked about the matter today, Donohoe said: 

“I am aware of the issue that is now being raised by Deputy Doherty and by indeed a number of groups regarding the relativity between the pandemic unemployment benefit, and then somebody who is in receipt of the income subsidy scheme on a very low-level of income.

“I’m aware of the gap that is there at the moment.

“This is one of the issues that we are having a look at in the context of this scheme.”

The minister said there’s “a real value in maintaining the relationship with your employer”, which is what the income subsidy scheme aims to encourage. However, he admitted that this is a “big issue” for workers at the moment. 

“But I do accept that there are a number of groups at the moment and a number of companies and former employees in particular parts of our economy for whom this gap is an issue,” he said, adding:

“I’m looking at that along with a number of other matters at the moment.”

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    Mute Sarah
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    Nov 4th 2018, 5:53 PM

    Reminds me of that Olay ad “is it DNA or Olay”. It’s DNA, it will always be DNA some people are just genetically gifted to look younger and prettier for longer and can get the same results with water as someone else would with all the expensive beauty products in the world….

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    Mute Veronica
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    Nov 4th 2018, 7:42 PM

    @Sarah: yep. The only thing that works to prevent you looking older before your time is suncream.

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    Mute James O'Brien
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    Nov 4th 2018, 5:58 PM

    Just stay natural and forget the BS shoved down our throat by these companies and this advertisement piece.

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    Mute David McShite
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    Nov 4th 2018, 5:52 PM

    Beauty consumers are more educated now than ever according to the Dublin-based aesthetician….
    Please, they are amongst the most vacuous and shallow people on the planet.
    As for an aesthetian, a fancy sounding made up word that Google spellchecker doesn’t recognise to give the impression of professionalism.

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    Mute Maggie O'Sullivan
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    Nov 4th 2018, 11:34 PM

    My friend text me the other day to say her 13 year old daughter was going to her first disco. The daughter had to get new outfit, new make-up, fake tan, eyebrows done and a new half bra (whatever that is). She ended the text with FFS!!!!!! I replied with the text, we used to go out with a jumper and jeans and we were happy out!!!!! If your beautiful inside, your beautiful outside.

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    Mute Diarmuid Hunt
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    Nov 4th 2018, 6:10 PM

    Correct me if I’m wrong but wouldn’t breathing pure oxygen kill you whether it’s in a pressurised chamber or not?

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    Mute Mrsuperiority
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    Nov 4th 2018, 9:14 PM

    @Diarmuid Hunt: you’re wrong.

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    Mute Carla Brennan
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    Nov 5th 2018, 1:21 AM

    @Diarmuid Hunt: Not at all, I go for 1 hour a week as a treatment for MS, also beneficial for cancer, sports injuries etc. due to its healing properties. Too expensive in South so I go to the North where an actual charity runs it. Long term users of HBO actually do have fabulous skin!

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    Mute Fiona Fitzgerald
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    Nov 5th 2018, 5:56 PM

    @Carla Brennan: But it doesn’t ‘heal cancer’. I’ve read studies of studies, and they all conclude that while it doesn’t do harm, only some people with breast cancer had a slight improvement in their health. Whether that was due to the hyperbaric sessions or not is debatable. It doesn’t even affect most types of cancer either way. I would like to hear what charity is paying a sports clinic to treat cancer patients, as that sort of wishful fundraising seems a bit of a con.

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    Mute Watchful Axe
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    Nov 4th 2018, 8:48 PM

    Jaz, that thumbnail looked like someone dangling off a bridge for a sec.

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