BACKGROUND

“SustainingProgress”Commitment.TheDepartmentofEnterpriseTradeandEmploymentsoughttoaddressthiscommitmentthroughamoremainstreamedapproachbydevelopinganewWageSubsidySchemeaimedat:IncreasingtheemploymentofpeoplewithdisabilitiesincludingthoseinShelteredEmployment.ReplacingthePilotProgrammefortheEmploymentofPeoplewithDisabilities(PEP)andEmploymentSupportScheme(ESS).

1SCOPEOFWAGESUBSIDYSCHEMEWSSoffersfinancialsupportsforbothEmployerandEmployee.Availabletoallemployers(exceptpublicserviceemployersand/oranyemployeesorschemeswherewagesarefundedbyFáS).DETEhascommittedfundingona3yearpilotbasis-31December2007.Atotalof€10mnwasallocatedin2005.Subjecttothesuccessfuloperationofthe3yearpilotphaseandbudgetaryconstraints,DETEiscommittedtorolling-outthepilot.2

THEDEPARTMENTOFENTERPRISETRADE&EMPLOYMENTCIRCULATEDTHEIRPROPOSALTOTHEFOLLOWINGORGANISATIONSFORCOMMENT:

ICTU IBEC GandonEnterprises PwDI CNEASTA NationalDisabilityAuthority FederationofVoluntaryBodiesinIreland ForumofPeoplewithDisabilities DisabilityFederationofIrelandFáS3FáSINTERNALGUIDELINESWEREPREPAREDINCONSULTATIONWITH:DeptHealthandChildrenDeptSocial&FamilyAffairsDeptEnterpriseTradeandEmploymentFáSTradeUnionsFáSEmploymentServicesStaffandManagersFáSFinanceandAdministrationStaffandManagersFáSICTDepartment4Structuredunderthreeseparatestrands.Awagesubsidypaymentbasedonanemployee’sproductivitylevelTop-uptocoveradditionalsupervisory,management&otherworkbasedcosts€30,000towardsemployinganEmploymentAssistantOfficer.Companiesmaybenefitunderoneorallthreestrandssimultaneously.

FINANCIALSUPPORTSFOREMPLOYERS5FINANCIALSUPPORTSFOREMPLOYEESDisabledemployees,whoqualifyforDSFABack-to-WorkAllowance(BTW),canavailoftheWageSubsidySchemeTheywillretainfor3yearsanysecondarybenefitswhichtheywereinreceiptofpriortotakingupemployment(i.e.medicalcard,travelpass).ShouldadisabledpersonnotbeeligibleforDSFABack-to-WorkAllowance,theymaystillapplyfortheWSS.6WSSCONDITIONSOFEMPLOYMENTEmployeesmustcomeoffallstateallowancesexceptBTWAllowanceiftheyqualifyforit.whoareemployedthroughtheDisabilityAllowanceDisregardarenoteligibleforthisscheme(DAplus€120overearningsthreshold)ontheWSSaresubjecttothesameconditionsofemploymentsasotheremployees,including - PRSIcontributions - Annualleave - Taxdeductions - Min.wage7Allemployers(exceptPublicServiceEmployersand/oranyemployersorschemeswherewagesarefundedbyFáS),whoprovide20+hoursperweek,uptoamaximumof39hoursperweekemploymentPartnershipCompaniesLeaderPlusCompaniesForadministrationpurposes–regionallocationofjobisdeterminedbywheretheemployerprocessesthepayroll.EMPLOYERSWHOAREELIGIBLE8REQUIREMENTFOREMPLOYERSEmployerswhoqualifymustcomplywithstatutoryrequirementsinregardtoemploymentprotectionlegislation,PRSIandincometaxliability.EmploymentforthepurposeoftheWageSubsidySchemeisdefinedasremuneratedworkwhichcomplieswiththeabovestatutoryrequirements.Employersmustpaythegoingrateforthejob.9EMPLOYERSWHOARENOTELIGIBLEPublicServiceEmployers–asdefinedbytheDisabilityAct,2005.FáSCommunityEmployment.SocialEconomy.JobInitiative.SupportedEmploymentSponsors.10Part5oftheDisabilityActhasestablishedthatPublicBodiesare:anyDepartmentofState,OfficeofthePresident,OfficeoftheAttorneyGeneral,OfficeoftheComptrollerandAuditorGeneral,OfficeoftheOireachtas,alocalauthority,ahealthexecutive,aperson,bodyororganisation(otherthantheDefenceForces)established(1) by,orunderanyenactment(otherthantheCompaniesActs1963to2003);orundertheCompaniesActs1963to2003,inpursuanceofpowersconferredbyorunderanotherenactment,andfinancedwhollyorpartly,whetherdirectlyorindirectly,bymeansofmoneysprovided,orloansmadeorguaranteed,byaMinisteroftheGovernmentorsharesheldbyoronbehalfofaMinisteroftheGovernment.(DisabilityAct2005).EMPLOYERSWHOARENOTELIGIBLE11basedontheemployee’sworkproductivitylevelandthenumberofhoursworkedproductivitylevelsbetween50%-80%,amaximumcontributionof€7,650perannum,basedon39hourweek(hourlyrateof€3.77).productivitylevelsbelow50%,amaximumcontributionof€9,500perannum,basedon39hourweek(hourlyrateof€4.69).Theemployerpays100%ofthegrosswageasadvertisedtotheemployee.HOWWSSWORKSStrandI:WageSubsidyPayment12acompanyemployingmorethantwodisabledpeoplecanavailofatop-upgranttocovertheadditionalsupervisory,managementandother

workbasedcostsThetop-upisbasedonthenumberofdisabledemployeesemployed&isapercentageofthewagesubsidiesreceivede.g. -3to6disabledemployees,10%top-up -7to11disabledemployees,20%top-up -12to16disabledemployees,30%top-up -17to22disabledemployees,40%top-up -23+disabledemployees,50%top-upHOWWSSWORKSCont.StrandII:AdditionalManagementandSupervisoryCosts13anemployerwhoemploys30ormoredisabledemployeescanavailofagrantof€30,000,perannumtowardstheexpenseofemployinganEmploymentAssistanceOfficer(EAO).thegrantispaidonamonthlybasis.

HOWWSSWORKSCont.StrandIII:EmploymentAssistanceOfficer14WSSFOREMPLOYEESDisabledemployees,whoqualifyforBacktoWorkAllowance,canavailofthisSchemewhenreturningtowork.Employeeswillretain,forthreeyears,anysecondarybenefitswhichtheyhavebeeninreceiptofpriortotakingupemploymentEligibilityforBTWAllowancedependsonDSFAstatus.DSFAisresponsiblefortheprocessingofandadministrationBTWAllowance.RestorationofDisabilityAllowanceandInvalidityPensionisautomaticifunabletocontinueonWSS

15DISCONTINUATIONOFESSANDPEPWillbefrozenattheexistingparticipant levelasof31stAugust2005.IfapersonleavesESS,theplacecannotbeofferedbyFáStoanotherdisabledpersonastheplaceceasestoexistonexit.EmploymentSupportScheme(ESS)PilotProgrammefortheEmploymentofPeoplewithDisabilities(PEP)HasceasedandisbeingabsorbedintotheWageSubsidyScheme.16

Subsidypaymentsfordisabledemployeeswithaproductivitylevelat50%-80%STRANDI:WAGESUBSIDYPAYMENTMAXWAGESUBSIDYPERANNUM=7,650HOURLYWAGESUBSIDYRATES=3.77

HOURSWORKEDHourlyWeeklyPerAnnum

213.7779.174,116223.7782.944,312233.7786.714,508243.7790.484,704253.7794.254,901263.7798.025097273.77101.795,293283.77105.565,489293.77109.335,685303.77113.105,881313.77116.876,077323.77120.646,273333.77124.416,469343.77128.186,665353.77131.956,861363.77135.727,057373.77139.497,253383.77143.267,449393.77147.037,64517Subsidypaymentsfordisabledemployeeswithaproductivitylevelbelow50%MAXWAGESUBSIDYPERANNUM=9,500HOURLYWAGESUBSIDYRATES=4.69

HOURSWORKEDHourlyWeeklyPerAnnum

214.6998.495,121224.69103.185,365234.69107.875,609244.69112.565,853254.69117.256,097264.69121.946,340274.69126.636,584284.69131.326,828294.69136.017,072304.69140.707,316314.69145.397,560324.69150.087,804334.69154.778,048344.69159.468,291354.69164.158,535364.69168.848,779374.69173.539,023384.69178.229,267394.69182.919,511STRANDI:WAGESUBSIDYPAYMENT18LaunchedbyMinisterMartin,DETE,inJuly,2005.CommencednationallyonSeptember1st,2005.AdministrationofSchemecommencedwithamanualsystemforprocessingapplicants,willremainuntilICTsystemisoperational.CurrentICTSchedule:RegistrationforemployersandemployeeswasoperationalattheendofSeptemberInvoicingsystemwillbeoperationalbyDecember,31st2005CURRENTSTATUS-WSS193strandfinancialstructurerecognisesthoseemployerswhoemploymorethanonedisabledperson.Potentialexistsforbothemployersandemployeestoreceiveanincentive.Easyassessmentstructure,from50%-80%orbelow50%productivitylevels.Itiscalculatedonanhourlyrate.

Anallowanceisavailabletocoveradditionalmanagement&supervisorycosts