The new JobsPlus scheme which will incentivise businesses to hire long-term unemployed persons from the Live Register has been rolled out by Government. This will replace the Revenue Job Assist and Employer Job (PRSI) Exemption Scheme from 1st July 2013 and, in a nutshell, means that regular cash payments will be made to qualifying employers to offset wage costs where they have taken on jobseekers who have been on the Live Register for 12 months or more.
What is the purpose of the incentive?
JobsPlus is designed to encourage employers to focus their recruitment efforts on those who have been out of work for long periods. Indeed, the level of payment that an employer will receive is increased where the jobseeker has been out of work for more than two years.
When does the incentive start?
The Scheme has been in place since 1 July 2013 and is being trialed for a six month period.
What payments would I get if I participate?
The payments depend on how long the employee has been out of work:
- €7500 per employee if the employee has been out of work from 12-24 months
- €10000 per employee if the employee has been out of work for more than 24 months
All such payments would be made by Electronic Fund Transfer and will not be taxable.
How many employees can I take under the scheme?
Currently an employer can take on as many employees as they wish as there is no maximum limit set. However, the Department of Social Protection has reserved the right to set a limit, especially in the event that the scheme takes off and cost of the scheme becomes prohibitively expensive.
How do I register?
Any employer in the private (including commercial semi-state), community, not-for-profit and voluntary sectors, and any PAYE registered self-employed employer, may register through completing an online application form on www.jobsplus.ie.
Are there any restrictions in respect of employees/jobseekers?
Importantly, there are a number of restrictions that employers should be aware of:
- This Scheme only applies to job seekers on the Live Register for more than 12 months. Thus, it cannot be used in respect of existing employees.
- The Scheme cannot be used to offset an existing employee’s reduced-hours or temporary lay-off, even where such persons have been claiming State benefits (as a result of their cut hours) for more than 12 months.
- In order to qualify an employer must offer full time employment to the jobseeker of at least 30 hours per week, spanning at least 4 days per week.
- The Scheme will not apply to the recruitment of close family members (spouse, civil partners, children, parents, siblings).
- Part-time employment and jobs which are short-term and/or seasonal will not be eligible under the JobsPlus Incentive.
- If the employee leaves then the incentive will no longer apply. Thus, if you wish to take on a new employee in that role under the Scheme then you must reapply for the Incentive again.
Conclusion
From an employer perspective, the typical value of the incentive over a two-year period is circa 23% of the gross minimum wage cost (including employer PRSI). This is an excellent incentive for any employer, especially where you have a role to fill.
Employers should seek advice from Peninsula Business Services if they have any questions in respect of the JobsPlus Incentive. Please phone the 24 Hour Advice Service on 01 855 50 50 and one of our experienced consultants will be happy to assi
