November 2005 BRIEFING ON NEW FS WAGE SUBSIDY SCHEME FOR IASE CONFERENCE 2005 LIMERICK
November 2005 BACKGROUND Sustaining Progress Commitment. The Department of Enterprise Trade and Employment sought to address this commitment through a more mainstreamed approach by developing a new Wage Subsidy Scheme aimed at : 1.Increasing the employment of people with disabilities including those in Sheltered Employment. 2.Replacing the Pilot Programme for the Employment of People with Disabilities (PEP) and Employment Support Scheme (ESS).
November 2005 SCOPE OF WAGE SUBSIDY SCHEME WSS offers financial supports for both Employer and Employee. Available to all employers (except public service employers and/or any employees or schemes where wages are funded by FS). DETE has committed funding on a 3 year pilot basis - 31 December 2007. A total of 10 mn was allocated in 2005. Subject to the successful operation of the 3 year pilot phase and budgetary constraints, DETE is committed to rolling-out the pilot.
November 2005 THE DEPARTMENT OF ENTERPRISE TRADE & EMPLOYMENT CIRCULATED THEIR PROPOSAL TO THE FOLLOWING ORGANISATIONS FOR COMMENT: ICTU IBEC Gandon Enterprises PwDI CNEASTA National Disability Authority Federation of Voluntary Bodies in Ireland Forum of People with Disabilities Disability Federation of Ireland FS
November 2005 FS INTERNAL GUIDELINES WERE PREPARED IN CONSULTATION WITH: Dept Health and Children Dept Social & Family Affairs Dept Enterprise Trade and Employment FS Trade Unions FS Employment Services Staff and Managers FS Finance and Administration Staff and Managers FS ICT Department
November 2005 Structured under three separate strands. A wage subsidy payment based on an employee s productivity level Top-up to cover additional supervisory, management & other work based costs 30,000 towards employing an Employment Assistant Officer. Companies may benefit under one or all three strands simultaneously. FINANCIAL SUPPORTS FOR EMPLOYERS
November 2005 FINANCIAL SUPPORTS FOR EMPLOYEES Disabled employees, who qualify for DSFA Back- to-Work Allowance (BTW), can avail of the Wage Subsidy Scheme They will retain for 3 years any secondary benefits which they were in receipt of prior to taking up employment (i.e. medical card, travel pass). Should a disabled person not be eligible for DSFA Back-to-Work Allowance, they may still apply for the WSS.
November 2005 WSS CONDITIONS OF EMPLOYMENT Employees must come off all state allowances except BTW Allowance if they qualify for it. who are employed through the Disability Allowance Disregard are not eligible for this scheme (DA plus 120 over earnings threshold) on the WSS are subject to the same conditions of employments as other employees, including - PRSI contributions - Annual leave - Tax deductions - Min. wage
November 2005 All employers (except Public Service Employers and/or any employers or schemes where wages are funded by FS), who provide 20+ hours per week, up to a maximum of 39 hours per week employment Partnership Companies Leader Plus Companies For administration purposes regional location of job is determined by where the employer processes the payroll. EMPLOYERS WHO ARE ELIGIBLE
November 2005 REQUIREMENT FOR EMPLOYERS Employers who qualify must comply with statutory requirements in regard to employment protection legislation, PRSI and income tax liability. Employment for the purpose of the Wage Subsidy Scheme is defined as remunerated work which complies with the above statutory requirements. Employers must pay the going rate for the job.
November 2005 EMPLOYERS WHO ARE NOT ELIGIBLE Public Service Employers as defined by the Disability Act, 2005. FS Community Employment. Social Economy. Job Initiative. Supported Employment Sponsors.
November 2005 Part 5 of the Disability Act has established that Public Bodies are: any Department of State, Office of the President, Office of the Attorney General, Office of the Comptroller and Auditor General, Office of the Oireachtas, a local authority, a health executive, a person, body or organisation (other than the Defence Forces) established (1) by, or under any enactment (other than the Companies Acts 1963 to 2003); or (2)under the Companies Acts 1963 to 2003, in pursuance of powers conferred by or under another enactment, and financed wholly or partly, whether directly or indirectly, by means of moneys provided, or loans made or guaranteed, by a Minister of the Government or shares held by or on behalf of a Minister of the Government. (Disability Act 2005). EMPLOYERS WHO ARE NOT ELIGIBLE
November 2005 based on the employee s work productivity level and the number of hours worked productivity levels between 50% - 80%, a maximum contribution of 7,650 per annum, based on 39 hour week (hourly rate of 3.77). productivity levels below 50%, a maximum contribution of 9,500 per annum, based on 39 hour week (hourly rate of 4.69). The employer pays 100% of the gross wage as advertised to the employee. HOW WSS WORKS Strand I: Wage Subsidy Payment
November 2005 a company employing more than two disabled people can avail of a top-up grant to cover the additional supervisory, management and other work based costs The top-up is based on the number of disabled employees employed & is a percentage of the wage subsidies received e.g. - 3 to 6 disabled employees, 10% top-up - 7 to 11 disabled employees, 20% top-up - 12 to 16 disabled employees, 30% top-up - 17 to 22 disabled employees, 40% top-up - 23 +disabled employees, 50% top-up HOW WSS WORKS Cont. Strand II: Additional Management and Supervisory Costs
November 2005 an employer who employs 30 or more disabled employees can avail of a grant of 30,000, per annum towards the expense of employing an Employment Assistance Officer (EAO). the grant is paid on a monthly basis. HOW WSS WORKS Cont. Strand III: Employment Assistance Officer
November 2005 WSS FOR EMPLOYEES Disabled employees, who qualify for Back to Work Allowance, can avail of this Scheme when returning to work. Employees will retain, for three years, any secondary benefits which they have been in receipt of prior to taking up employment Eligibility for BTW Allowance depends on DSFA status. DSFA is responsible for the processing of and administration BTW Allowance. Restoration of Disability Allowance and Invalidity Pension is automatic if unable to continue on WSS
November 2005 DISCONTINUATION OF ESS AND PEP Will be frozen at the existing participant level as of 31 st August 2005. If a person leaves ESS, the place cannot be offered by F S to another disabled person as the place ceases to exist on exit. Employment Support Scheme (ESS) Pilot Programme for the Employment of People with Disabilities (PEP) Has ceased and is being absorbed into the Wage Subsidy Scheme.
November 2005 Subsidy payments for disabled employees with a productivity level at 50% - 80% STRAND I: WAGE SUBSIDY PAYMENT MAX WAGE SUBSIDY PER ANNUM = 7,650 HOURLY WAGE SUBSIDY RATES = 3.77 HOURS WORKED HourlyWeeklyPer Annum 21 3.7779.174,116 22 3.7782.944,312 23 3.7786.714,508 24 3.7790.484,704 25 3.7794.254,901 26 3.7798.025097 27 3.77101.795,293 28 3.77105.565,489 29 3.77109.335,685 30 3.77113.105,881 31 3.77116.876,077 32 3.77120.646,273 33 3.77124.416,469 34 3.77128.186,665 35 3.77131.956,861 36 3.77135.727,057 37 3.77139.497,253 38 3.77143.267,449 39 3.77147.037,645
November 2005 Subsidy payments for disabled employees with a productivity level below 50% MAX WAGE SUBSIDY PER ANNUM = 9,500 HOURLY WAGE SUBSIDY RATES = 4.69 HOURS WORKED HourlyWeeklyPer Annum 214.6998.495,121 22 4.69103.185,365 23 4.69107.875,609 24 4.69112.565,853 25 4.69117.256,097 26 4.69121.946,340 27 4.69126.636,584 28 4.69131.326,828 29 4.69136.017,072 30 4.69140.707,316 31 4.69145.397,560 32 4.69150.087,804 33 4.69154.778,048 34 4.69159.468,291 35 4.69164.158,535 36 4.69168.848,779 37 4.69173.539,023 38 4.69178.229,267 39 4.69182.919,511 STRAND I: WAGE SUBSIDY PAYMENT
November 2005 Launched by Minister Martin, DETE, in July, 2005. Commenced nationally on September 1 st, 2005. Administration of Scheme commenced with a manual system for processing applicants, will remain until ICT system is operational. Current ICT Schedule: Registration for employers and employees was operational at the end of September Invoicing system will be operational by December, 31 st 2005 CURRENT STATUS - WSS
November 2005 3 strand financial structure recognises those employers who employ more than one disabled person. Potential exists for both employers and employees to receive an incentive. Easy assessment structure, from 50%- 80% or below 50% productivity levels. It is calculated on an hourly rate. An allowance is available to cover additional management & supervisory costs to employers employing more than 2 disabled employees. Grant towards the employment of an Employment Assistance Officer. Employers who are availing of the FAS Employee Retention Grant scheme may also qualify for WSS. BENEFITS TO EMPLOYERS
November 2005 It encourages potential disabled employees to avail of open employment opportunities. The choice of working hours is extended now employees can work from 21 to 39 hours per week Disabled people who meet qualifying conditions can avail of DSFAs Back-to-Work Allowance. Those who qualify for Back-To-Work Allowance will retain secondary benefits for up to three years. A disabled person not in receipt of any DSFA payment and not eligible for the Back to Work Allowance may still avail of WSS. Disabled employees on the Employment Support Scheme may transfer to WSS under certain conditions. Disabled people transferring from Supported Employment may qualify for WSS. BENEFITS TO EMPLOYEES
November 2005 NEXT STEPS FS has been promoting WSS and other disability programmes to Employers, i.e. Excellence Through People award holders and O 2 Award participants. Requesting you to assist us to raise awareness of WSS to relevant groups such as participants in Supported Employment or trainees in Specialist Training Providers. In 2004, 2,653 participants in Supported Employment received services, of which 1,567 were placed in employment. It is intended that WSS will assist more people with disabilities, who are able to do so, to make the transition into the open labour market.