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LAST UPDATE | 20 Mar 2020
A TOP UP scheme for employers who have had to let go of staff temporarily due to Covid-19 to provide some payment to their employees and receive a refund from the State has been approved by the government.
This scheme allows employers to pay workers €203 a week and receive a refund from the State in the instance that the employer has ceased trading and as a result of financial difficulty have to lay off staff on a temporary basis.
Minister for Employment Affairs and Social Protection, Regina Doherty, said that employers who engage in the scheme will be able to top up their payments in this way.
The details are being finalised and will be announced early next week, Doherty confirmed.
“This will further strengthen the viability of the scheme and ensure that many employers can provide some additional income above the basic social welfare payment for their workers,” she said.
Minister for Business, Enterprise and Innovation, Heather Humphreys said the government will ensure “everything is done” to protect firms sustain their operations as required.
“The Department of Business, Enterprise and Innovation, together with Enterprise Ireland, IDA Ireland and the other state agencies, will also continue to support companies in every way they can,” she said.
Unions had been calling for top up options to be made available for employers.
This echoed the calls from Irish business lobby group Ibec which asked that the government create an income compensation scheme which would see the government provide up to 75% of an employee’s income if they were laid off.
Earlier today, Ibec warned that a package of up to €6 billion to provide “income continuity” for employees impacted by the Covid-19 crisis is needed to insure against the fallout for economy and business sectors.
A report from the group published today details a range of social welfare measures – similar to those in European countries where up to 70% of income is protected through welfare payments – in order to insulate the country against the economic fallout of job losses and lay-offs.
Employees in the retail and hospitality sectors have already been impacted with many facing a period of unemployment while pubs, restaurants and other businesses shut up shop on the back of government advice.
Most of those employees will avail of the unemployment benefit of €203 made available by the Government, while those infected with the coronavirus can avail of a €305 illness benefit.
But Fergal O’Brien, director of policy and public affairs at Ibec, said a more ambitious welfare plan was needed to insure the economy and to keep supply coming within manufacturing.
“Our core message here is that we obviously see that the Government is incrementally responding to this [and] has had to take some very rapid measures over the past week.
Those measures have been helpful. Our view to date is they have not been enough.
“So we are calling for much more ambition in terms of the scale of measures required. At the core of that, the philosophy is very much around ensuring that we continue to keep income flowing into households and Ireland is an absolute outlier here in an international context.
“We have a very minimalist social welfare safety net, we don’t have a sophisticated social insurance scheme like you see across Europe… When we look at lower income countries across Europe such as Portugal, they have put very significant income protection provisions in place in response to the crisis.
“We’re seeing a number of countries protecting up to 100% of income, up to a cap of about €40,000 for a period of three months. In Ireland, both our illness benefit and our Covid emergency payment are minimalist payments. We’re going to need to go much beyond that.”
Proposal
In its proposal, Ibec suggests that in a worst case scenario, where 500,000 people are in need of income continuity as a result of the coronavirus measures, and where the government covers 100% of that income, it would amount to a cost of €6 billion to the State.
In a scenario involving half of that, with around 300,000 requiring income, the cost to the State would be in the region of €3 billion.
“We’re suggesting that we think the 70% range is about appropriate and the overall costings will depend on what cap you put on it and looking at the average income of workers in the most impacted sectors, we have costed this particular model at around a €30,000 [income] average,” O’Brien said.
“If we’re providing supports in the region of 300,000 workers at a 70% replacement rate, we’d be looking at about €2.5 billion and that would increase depending on the amount of income that [the government] wanted to preserve.”
Ibec’s research and proposals centre around two stages – the first involving preservation of economic growth as much as possible, protecting employees income and the manufacturing industries to continue the supply of goods through the economy.
It wants measures to protect those areas before moving to a ‘reboot’ stage once the Covid-19 crisis is over, when inevitably there will be a slowdown in economic growth, but nowhere near the damage caused by the financial crash a decade ago.
“There is no precise comparator. It shares some of the features of an oil crisis, it shares some of the features of a war without the physical destruction so it really is unprecedented but it is not the type of demand shock that we saw in 2008. It doesn’t have the complexity of the financial crisis that we had in 2008.
“So I think a very different set of responses can bring us out of this very very quickly.”
Losses
Speaking to reporters yesterday, Social Protection Minister Regina Doherty said as the situation is changing so rapidly, it is difficult for the government to put a final number on those expected to lose their jobs as a result of the outbreak.
Already there are 140,000 workers in the hospitality industry affected, 54,000 in the accommodation industry and 200,000 in retail. The minister said industries she had not expected to be impacted are now suffering losses and the government is moving to respond to that.
“We have never experienced a challenge to our welfare system of this magnitude in living memory. Since last Friday, my Department has been assisting an unprecedented increase in the numbers of people seeking income support from the Department,” Doherty said in a statement today.
“I would also like to thank the public for their patience and forbearance as we try to meet the challenge of a sudden large scale increase in demand for our services,” she said.
With reporting by Orla Dwyer.
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I’ve been temporarily laid off and I’m now losing 2/3s of my income. I’ve been paying Dublin rents for years and have no savings. The welfare payment won’t cover my rent. I’m scared
@Niall Dunne: sorry to hear that. Yes it is a scary time, but dont worry about it for a few months. Do contact citizens advice, or similar organisations for expert advice
@Niall Dunne:
Does the rent supplement not cover? This is sadly the case for many workers; essential workers of our society who work 40 hours a week should be able to save for emergencies.
We bailed out the banks that we’ll be paying for the next 4 generations and the banks can’t even bail us out for 3 bloody months.
@Dean: I have been saying that for donkeys years. With the current cost of living in this country, one would have to be earning 60K+ per year to be in a position to save money.
Anyone that has lived and worked in other countries can clearly see that. The majority of our people are at nothing here. Working very hard but really have nothing when push comes to shove.
The cost of living is way to high here and it things won’t improve until that is addressed.
@David Corrigan: fully agree. You only see it when you live elsewhere. People in Ireland have been brainwashed thinking they’ve had it good for the last decade or so but very few have much to show for it. But sure didn’t Leo give a good speech the other day so it’s all grand. We didn’t learn or change after the last crash so I’d expect more of the same when things pick up again this time.
@David Corrigan: this is reality under ffg – we need a huge change in politics to get us moving forward
@Niall Dunne: learn to code.
@Niall Dunne: One of the measures Government announced yesterday is a temporary ban on evictions! So you can’t be evicted!
Also a rent freeze to come in too.
Government and Dail to meet again next Thursday re legislation.
The notice period if you’re in a rental for less than 6months will be changed from 28days notice to 90 days notice.
3 month mortgage freeze being brought in too.
@Dean: I saw Brian Hayes, the former FG Politician, on a show during the week . He now acts as a spokesman for the banking industry – he said that the banks are aware of the situation and are listening to their customers and will be flexible. He then went on to say that any moratorium or pause on a mortgage will result in full additional interest at the end of term. I never liked him when he was in politics and found his statement to be reprehensible.
@Paul: pointless comment, give it a rest
@The Guru: I couldn’t agree more.
@Niall Dunne: did you actually apply for rent supplement because what you state would meet the criteria
@PC: hope it works out for him, that was the usual ridiculous response from certain people before the virus to people losing jobs, flippant remarks like” just upskill”
@Paul: That kind of remark always gets me angry also. To up skill would take a few years in college etc and then one would have to start at the very bottom of the ladder financially. It would take that person 10 years to get to the salary they would have been on before they started to up skill. A pure waste of time.
@Neil McAuley: poacher turned game keeper
@David Corrigan: ah sure I know, it’s be said many a time smug and annoying
@Dean: AIB going ahead with new bank and card charges in may no matter what happens. Its a disgrace
@Niall Dunne: you’re not alone bud
@Niall Dunne: I lost my job during the 2007/2009 crisis. I went back to college. I learnt new stuff. So today I have a job. Should I feel sympathy for folks losing their jobs these days. Of course I do. Do they deserve special preference. I can assure you I didn’t get that but I totally understand where people are coming from
@Dean:
It should be a given that the banks step up to this!
We bailed them out back in 2008 and we continue to pay the highest interest rates in Europe!
I’ve just come back from Australia where they’ve cut the interest rate to 0.5 %.
The government need to make it clear to the banks that this is what’s expected of them.
Everybody is stepping up to the plate, time got the banks to follow suit.
Being in the construction industry I’m worried we will be just forgotten about as per usual. It’s ok if you are working on an open building site but for those of us working in people’s houses we can’t go to work.
I wonder how many folks that have complained over the years about the “high level” of unemployment benefit payments in this country now unfortunately found themselves having to contact welfare in recent days, looking for those very same unemployment benefits.
Do they still think it’s a “high level” of payment now?
@Robin Basstard: for all the income tax I’ve paid over the last 25 years, most of it at the higher rate, i would expect some more than €203 per week, especially as I’ve never been a burden to the state before
@Robin Basstard: Likewise with how carers have been low paid or unpaid for as long as I can remember.
@cars: I also paid a income tax for over 25 years. I also expected a better financial parachute when I eventually needed it. It didn’t happen. Hopefully people power will leave the government no choice now. Keeping the pandemic payment at a minimum is a short sighted move that will stall the economy. People can’t spend what they don’t have. You are absolutely right, those who pay in to the social fund shouldn’t have to scramble for support. That is the point of paying into it.
@Robin Basstard: it is high when some of those claiming it did nothing (nor ever want to) to contribute in the first place!
@Robin Basstard: obviously your on dole full time?
@Robin Basstard: This is a completely unique situation. I’ve no doubt that anyone complaining previously about unemployment benefits were aiming their anger at the sponger’s who contribute nothing to our society and would rather be on the dole. People that work and pay their taxes which in turn go towards social welfare payments have every right to expect support from the state in exceptional circumstances like this or if they are genuinely unemployed and making an effort.
@Robin Basstard: well a lot of those people are hard working who have worked every day since they were able to. I don’t think people think it’s too high. It’s that there are too many people on it who could and should work somewhere where they are capable.
@cars: force majeure
@Robin Basstard: the whole benefits package, when you lob in rent allowance, children etc is way too high yes. Absolutely.
@Abdessamad Raji: ????
@Robin Basstard: no-one I have seen comment on Journal has complained about unemployment benefits. Don’t confuse this (which should be an entitlement as paid for via PRSI) with social welfare for the never employed or the long term unemployed. In other countries unemployment is paid as a percentage of previous salary for a number of months (in some countries tapering lower after 6 months until your paid for entitlement runs out – or you get a job) and after this runs out you receive social welfare, which pays less.
It is the lifestyle une
Rich companies should be made to pay workers, they got any amount of help from state, low corporation tax, sometimes no tax (aple) take that 13 billion of them now and give to the people!!!!
@michal heba: There is no loyalty anymore Michal. I see companies close to me who are letting people go without a second thought.
@michal heba: Great news. Pity huge numbers in this the country illegally gets full benefits, rent allowance etc while pulling in big money tax free on the side due to an inept system not seen in any other country. i know a guy getting 150 per day tax free on top. No point to report 1 guy as the system is inadequate so all the rest continues.
@Damian Moylan: well, he’ll have to get by on the dole now, as all the casual work will dry up. :)
Although there doing there best I agree more need too be done for families notwithstanding. Ministers ect will receive full pay during this pandemic and action needs too be swift and no nonsence already I’m hearing banks are asking people too use there savings or stay on interest only lads we won’t tolerate crap from banks anymore
@John Leonard: here here
@John Leonard: Yup thats the kicker, TDs and Ministers will still receive their 100k plus pay package regardless. I appreciate the governments efforts and I am staunchly anti FG/FF but I agree more needs to be done to 1) Protect the economy 2) Protect workers 3) Ensure the HSE is never again an after thought.
@Aaron O’Leary: to be fair that applies to all public service, not solely politicians
So any employer who pays an employee more than 203 while off will not qualify to be reimbursed, as per usual there is a sneaky crippling sting in the tail of these great FG announcements.. Vile creatures
@MickN: that’s it indeed! I run a small business, 4 employees, within a week we lost half a year of business.. still paying staff their full wage as long as possible despite nothing coming in. Getting back €203/week would be a godsend right now. Tried doing this through payroll but have to lay-off staff in order to be allowed to pay it… (??).. So no help, even though we’re doing our best to keep people’s wages intact.
@MickN: that was made very clear from the start..
@Dave Walsh: hello Dave
Pull the plug , if you don’t you will regret it from someone who who didn’t pull the plug , rehire when you get back on your feet
I assume the businesses who fund IBEC would be happy to increase their tax contributions to fund this?
All TDS and Senators should be laid off like others who cannot get to their place of work. Only Taoiseach and the 15 Ministers should be paid and they should only get the ministerial element of their salaries.
@frank mcglynn: why? They are busier then ever with huge number of calls coming in to their constituency offices
The face of her believe me there will always be a catch with this government ask any of them to live on what they are offering Joe public you will find out no matter what ffg will not lose a penny
@Aishling Carslake: She’s talking about people who’ve lost their jobs & doesn’t seem to remember she’s one of them!
@Colette Kearns: why is she preaching to us if she lost her job and remember she lost her job for a very good reason
She was not capable of doing her job in the 1st place
@Aishling Carslake: What an iodiotic post devoid of any meaningful content.
@Damian Moylan: Which part is not true?
Where’s the ‘free house’ brigade now? You know the ones who always post here about how they would love to be on welfare because it’s such an easy life. Can’t wait to hear more from them and about how easy things are now they no longer are working.
@Wade Wilson: i am right here. permanent free houses for people who have sky sports and go to Spain twice a year is a disgusting first world problem. People like yourself need to remember who pays for your feee house. And soon there won’t be so many paying for your life style. The real workers will be on stuffed.
@Greg Daniel: Absolutely.
IBEC echoing Sinn Fein call yet people call it a money tree? We’re all part of this economy – this should be a bump and the economy will bounce back. Let’s show that faith instead of negative and conservative.
@Peter McGlynn: This is what David Mc Williams is strongly suggesting:
:’Why the Central Bank must give everyone free money right now’!(people and businesses)
SMEs account for 98% of all businesses in this country!
@Nuala Mc Namara: free money for all.
@Peter McGlynn: Nope, not a bump. A mountain imho.
IBEC are absolutely right, in most other countries unemployed benefit is proportional to salary, now is the time to finally move to a contribution based model here
@Stephen Kearon: IBEC and SF.. can you admit you agree with SF? say it, say it Stephen “I agree with SF” haha
@Stephen Kearon: ur right but only.paid for 1st 6 month to year on full rate, the reduced down each quarter till end of 2nd year. Then u get squat.
Look at the UK stimulus package. We are country miles behind. Its embarrassing
If ever that’s was proof that this country needs good Broadband everywhere this crisis is it now that so many have been forced to work from home.
@Aine O Connor: the Netflix thing is across Europe not just Ireland. But yes we need better broadband. I had eir engineers at the place I work last week to fix our line, one of them was surprised to hear we didn’t have fibre to the building but his colleague said the town is on the list scheduled to be upgraded. We only have fibre to the local exchange. Broadband and phone lines all over the town had to be repaired after all the storms.
@Aine O Connor: Yes, and an ambitious plan is in place to fix ok
We bailed you out, now you bail us out!
@Dave: No, the Eu bailed out bankrupt Irish banks (thank God)
@Damian Moylan: how so? The money from the EU was a loan. We (taxpayers) pay it back with interest. No one else but the Irish taxpayer paid for the banks
@Vin: we got basically an interest free loan to bail ourselves out
UK government just announced they will step in and fund 80% of wages to anyone who has lost their job as a result of the virus….Where’s your response Ireland??????
@Stuart Collins: it’s not a competition. UK has a much larger funds then we do
@Stuart Collins: Are you paying? Do you think the Uk can really do this? Where will we get the money from?
@Damian Moylan: like everywhere, print it and devalue your currency.
@Jim Buckley Barrett: that is because they can print their own money and we are told what money we can print by some unelected people in Brussels
As someone that works in a small family business I know exactly how difficult this is. We’ve closed the physical shop and our website has a limited subset of our products. We’re currently receiving all our summer stock which means we’ve huge invoices to pay with no income. There’s going to be a real limit to how long the owner can pay us at our normal wage before her reserves run out. We had planned a website upgrade but that was scheduled for a couple of months from now.
@Eileesh Buckley: Christ, my thoughts are with you. We need a further plan to support sme’s. And, can people please stop buying all their stuff abroad on foreign websites, support local companies and jobs Yeah, that’s you young people complaining about everything but undermining our economy big time.
Anything to be said about Universal Basic Income?…….or another mass??
@Gazza Lazza: regarding a temporary Universal Basic Income, I do not see a flaw.
Give every citizen €1,500 a month, (example) whether they are unemployed or Bono. When normality is restored, tax the €1,500 back from “the rich” (middle), so if it is not needed, they should have saved it.
This will keep the economy going and tax receipts flowing in to the government to fund it.
Also, employers should be advised not to lay-off staff (presuming they will need staff when this is over) and offer reduced wages if the employer is struggling to stay in business.
Since when did IBEC care about people.
@Gary Kearney: Since when did people buying all their stuff on foreign websites care about employees of ibec companies, local sme’s?
Does anyone know what the rational is behind the government not allowing an employer to top up the €203 social welfare payment??? If its a fear that unscrupulous employers will say their staff are laid off and then use it to subsidise their profits??? If thats what they are afraid of then they need to cop on and realise that this needs to be done whether or not a few bad apples take advantage of it. You’d swear they get more annoyed at the prospect of being taken advantage of more than the prospect of helping the poor people who need it. Somebody needs to remind them…ITS OUR BLOODY MONEY…they get it from our taxes. Give it back to those who need it…and allow their employers to top it up and stop being so tight with OUR MONEY.
@Kevin Tyrrell: This is a joke altogether. Some business owners actually want to be fair and try and soften the burden for their staff as much as possible but the government is basically forcing against this. Workers are going to be hit in the pocket even further as a result. Businesses will end up having to just pay the €203 to their staff if laid off now whereas otherwise employers might have been able to top this up to soften the blow. Can’t quite understand the rational other than what you suggested Kevin, which is pretty in the circumstances.
@Kevin Tyrrell: I think I’m a bit behind with my information, I see now they have ammended this as far as I can understand. Rant over for now.
Meanwhile Denmark and UK to pay 80% of wages and Regina Doherty who was basically sacked by her employers 6 weeks ago(the electorate) is still been paid full ministers pay and expenses
What a joke
Another recession on the way for the taxpayers to sort out what a mess this will be
@John O Donoghue: For sure. Unkown territory at this stage.
If they are genuinely concerned..meet the difference yourself….?
I got let go. not even temporary unemployment. Company is still open and they took on a new chap. Dont think my boss liked the fact that I needed two weeks off to self isolate.
@ChrisC: Sorry to hear that Chris. The lowlifes like your boss who take advantage of this drastic situation need to be named.. you should name them here.
@Walt Kowalski: that wouldn’t be fair on my colleagues who still work there. We’re all entitled to a fair day in court if we feel aggrieved and hopefully I’ll have mine
@ChrisC: That sounds very unfair and terribly cruel of your employer particularly at this time. I would certainly follow up on that if possible. Hope all is well other than that and take care of yourself.
@Tim Tom: well I booked a holiday home in cork for 2 weeks with the last of my money because the state said it’s a very bad time to be homeless and there is nothing that can be done for someone who was temporary sofa surfing in their pregnant sisters house, They have no issue taking tax from me every week but couldn’t give a toss about about the person. So I’m going to cork to fill my mind with nice scenery before I come back and sleep homeless on the streets. I dont drive, I just wonder why I give the state a day and a half of my working week out of five . Why ? Lots and lots of working homeless are going to be in this position very soon. Stay at home but fuc7 off out of site if you have any sort of unique situation. #stayathome #needtofind1first
The floodgates are now officially open
Does the business need a tax clearance certificate for this? thousands of companies don’t
Who is paying her now?
where is the forbearance for renters who are sick?…if and when this virus passes in some months , will they end up owing 1000′s of euros to the landlord classes and end up being evicted…so much for solidarity…stay classy FG.
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