Transcript FAS NEW WAGE SUBSIDY SCHEME

BRIEFING ON
NEW FÁS WAGE SUBSIDY
SCHEME
FOR
IASE CONFERENCE 2005
LIMERICK
November 2005
BACKGROUND
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“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 FÁS).
• 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:
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ICTU
IBEC
Gandon Enterprises
PwDI
CNEASTA
National Disability Authority
Federation of Voluntary Bodies in Ireland
Forum of People with Disabilities
Disability Federation of Ireland
FÁS
November 2005
FÁS INTERNAL GUIDELINES WERE
PREPARED IN CONSULTATION WITH:
– Dept Health and Children
– Dept Social & Family Affairs
– Dept Enterprise Trade and Employment
– FÁS Trade Unions
– FÁS Employment Services Staff and Managers
– FÁS Finance and Administration Staff and
Managers
– FÁS ICT Department
November 2005
FINANCIAL SUPPORTS FOR EMPLOYERS
• 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.
November 2005
FINANCIAL SUPPORTS FOR EMPLOYEES
• Disabled employees, who qualify for DSFA Backto-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
EMPLOYERS WHO ARE ELIGIBLE
• All employers (except Public Service Employers
and/or any employers or schemes where wages
are funded by FÁS), 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.
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.
• FÁS Community Employment.
• Social Economy.
• Job Initiative.
• Supported Employment Sponsors.
November 2005
EMPLOYERS WHO ARE NOT ELIGIBLE
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.
November 2005
(Disability Act 2005).
HOW WSS WORKS
Strand I: Wage Subsidy Payment
• 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.
November 2005
HOW WSS WORKS Cont.
Strand II: Additional Management and
Supervisory Costs
• 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
November 2005
HOW WSS WORKS Cont.
Strand III: Employment Assistance Officer
• 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.
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
Employment Support Scheme (ESS)
• Will be frozen at the existing participant
level as of 31st August 2005.
• If a person leaves ESS, the place cannot be
offered by FÁS to another disabled person as
the place ceases to exist on exit.
Pilot Programme for the Employment of People with
Disabilities (PEP)
• Has ceased and is being absorbed into the
Wage Subsidy Scheme.
November 2005
STRAND I: WAGE SUBSIDY PAYMENT
MAX WAGE SUBSIDY PER ANNUM = 7,650
HOURLY WAGE SUBSIDY RATES = 3.77
Subsidy payments
for disabled
employees with a
productivity level
at 50% - 80%
HOURS
WORKED
Hourly
Weekly
Per Annum
21
3.77
79.17
4,116
22
3.77
82.94
4,312
23
3.77
86.71
4,508
24
3.77
90.48
4,704
25
3.77
94.25
4,901
26
3.77
98.02
5097
27
3.77
101.79
5,293
28
3.77
105.56
5,489
29
3.77
109.33
5,685
30
3.77
113.10
5,881
31
3.77
116.87
6,077
32
3.77
120.64
6,273
33
3.77
124.41
6,469
34
3.77
128.18
6,665
35
3.77
131.95
6,861
36
3.77
135.72
7,057
37
3.77
139.49
7,253
38
3.77
143.26
7,449
3.77
147.03
7,645
November
39 2005
STRAND I: WAGE SUBSIDY PAYMENT
MAX WAGE SUBSIDY PER ANNUM = 9,500
HOURLY WAGE SUBSIDY RATES = 4.69
Subsidy
payments for
disabled
employees with
a productivity
level below 50%
HOURS
WORKED
Hourly
Weekly
Per Annum
21
4.69
98.49
5,121
22
4.69
103.18
5,365
23
4.69
107.87
5,609
24
4.69
112.56
5,853
25
4.69
117.25
6,097
26
4.69
121.94
6,340
27
4.69
126.63
6,584
28
4.69
131.32
6,828
29
4.69
136.01
7,072
30
4.69
140.70
7,316
31
4.69
145.39
7,560
32
4.69
150.08
7,804
33
4.69
154.77
8,048
34
4.69
159.46
8,291
35
4.69
164.15
8,535
36
4.69
168.84
8,779
37
4.69
173.53
9,023
38
4.69
178.22
9,267
4.69
182.91
9,511
November392005
CURRENT STATUS - WSS
• Launched by Minister Martin, DETE, in July, 2005.
• Commenced nationally on September 1st, 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, 31st 2005
November 2005
BENEFITS TO EMPLOYERS
• 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 employer’s 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.
November 2005
BENEFITS TO EMPLOYEES
• 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 DSFA’s 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.
November 2005
NEXT STEPS
• FÁS has been promoting WSS and other disability
programmes to Employers, i.e. Excellence Through
People award holders and O2 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.
November 2005