Dáil Éireann Debate, Thursday - 1 May 2025
106. Deputy Michael Murphy asked the Minister for Social Protection if he will explore the possibility of reducing the minimum hours of the wage subsidy scheme from 15 hours to ten hours (details supplied). [19846/25]
View answerThe Wage Subsidy Scheme is a key disability employment support. It aims to encourage employers to offer substantial and sustainable employment to people with disabilities through a subsidy.
Last year, my Department published a review of the Wage Subsidy Scheme.In April 2024, based on the findings in the review, my Department reduced the minimum required hours for the scheme from 21 hours per week to 15 hours per week. This change sought to make the scheme more accessible and flexible to people with disabilities. However, it also sought to ensure that the Wage Subsidy Scheme maintains its key aim to encourage employers to provide substantial and meaningful work to people with disabilities.
From 2017 to 2022, the proportion of employees working the maximum hours was more than double those working the minimum hours. For example, in 2022, 46% of employees worked 39 hours. This is exactly double the number of employees who worked 21 hours (23%).
The scheme needs to operate with the new 15-hour minimum requirement for a period before my Department can assess the impact this change has had on the scheme. As this reduced requirement has been in place for little more than a year, more time is needed to analyse the effect of the recent reduction in hours. Upon that analysis, I will ask my officials to examine any further reduction in hours.
I trust that this clarifies the issue for the Deputy.
