Weekly Covid-19 payment has risen to €350 – who will get it?

What has the Government now proposed to help workers affected by Covid-19?

Previously, the Government said it would offer €203 to people who lost their jobs. Now, it is to increase that sum to €350.

What about those who are out sick, or self-isolating as a result of Covid-19?

The Government’s existing payment of just over €300 for this group will also be raised to €350 a week.

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How bad does the Government fear unemployment could get?

Up to now, Minister for Social Protection Regina Doherty warned that 400,000 people could lose their jobs. Privately, the Government now fears that could rise to 500,000. Even before Tuesday's announcement, 118,000 had applied for Covid-19 relief.

How does it plan to support workers?

The Government will introduce a new wage subsidy scheme to encourage employers to keep workers on the books. In return, the Government will pay employers a rebate to cover the cost of up to €410 a week or up to 70 per cent of the employee’s previous weekly earning. Workers will not receive more than their previous income under the subsidy scheme.

Can employers provide more money to such workers under the subsidy scheme?

Yes. Employers will be asked to top up this amount where they can.

What is the situation in regard to tax?

The wage subsidy of up to €410 is tax-free. The Government said any top-up by the employer would be taxed in the normal way.

Can all employers avail of the wage subsidy scheme?

It is open to all employers except the public service. However, qualifying companies, charities, NGOs or any other organisation affected must show that their income has fallen by a quarter or more as a result of the pandemic.

How did the Government decide on the €350 figure?

Ministers said the figure was pitched so it would be close to the average weekly earnings of those sectors hardest hit by job losses as a result of Covid-19, such as hospitality and retail.

What about people who were on unemployment benefit before the Covid-19 crisis?

They will continue to receive the basic job seeker benefit of just over €200 a week. However, the Government says that some people with dependents will receive significantly more each week.

Can people eligible for the Covid-19 payment receive other benefits?

The Government says that based on their circumstances, such as having dependents, people could receive additional sums. However, this could take a few weeks to work out. In the meantime the aim is to provide quickly-delivered money to pay for food, household bills, etc.

What about the self-employed?

They are eligible for the Covid-19 unemployment payment.

How long will these new initiatives run for?

The new wage subsidy scheme will run for three months. It will be reviewed in the light of the coronavirus situation at that point.