Ireland’s Budget 2021 consisted of a huge €17 billion spending package with a large portion ringfenced to protect businesses and jobs against the twin threats of COVID-19 and Brexit.
Here, we look at some of the supports that could help your business during what looks set to be an unpredictable winter.
COVID-19 Restrictions Support Scheme
A new COVID-19 Restrictions Support Scheme (CRSS) is being introduced to support businesses worst hit by public health restrictions. This financial support could provide as much as €5,000 per week to eligible businesses.
Minister for Finance Paschal Donohoe also confirmed that the Employment Wage Subsidy Scheme (EWSS) income support will be extended next year if deemed necessary.
Working from home
The Budget speech acknowledged that a key factor in the country’s response to the COVID-19 pandemic has been the uptake in remote working.
He confirmed that an interdepartmental group continued to work on the development of a national strategy for remote work and service delivery. Employees will also be entitled to claim certain working from home tax reliefs.
Tax reliefs
While many businesses have been negatively impacted by public health restrictions, the hospitality sector has been hit particularly hard. As a result, the VAT rate has been reduced to 9% to support hotels, pubs, restaurants, and other businesses in the entertainment, tourism, and hospitality sectors.
Commercial rates holidays will be extended and employers will be permitted to warehouse certain payroll liabilities incurred under the Temporary Wage Subsidy Scheme for one year without interest.
Apprenticeships
Budget 2021 included details of various investments in training, upskilling, and education programmes.
These programmes may present your business with opportunities to recruit staff through apprenticeship and work placement schemes.
Illness Benefit
The number of ‘waiting days’ for Illness Benefit will reduce from six to three days for all new claims from the end of February 2021.
Many businesses tend to reduce sick pay by the amount the employee is entitled to under Illness Benefit entitlements which means costs savings for those businesses. Employees with no sick pay entitlements will also benefit by receiving their Illness Benefit three days sooner.
Parent’s benefit
As forecasted, Budget 2021 also confirmed that parent’s leave and benefit will increase to five weeks for parents of children born or adopted from November 1st, 2019.
Parent’s leave is available to employed parents during the first year of a child’s life. Before this increase, parent’s leave was limited to two weeks.
National minimum wage
Finally, the Budget confirmed that the national minimum wage hourly rate of pay will increase to €10.20 on January 1st, 2021.
To ensure employers don’t seek to reduce the hours of a full-time worker on minimum wage, the weekly threshold for the higher rate of employer’s PRSI will be subject to a corresponding increase from €394 to €398.
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