Sean Fleming
Question:237. Deputy Sean Fleming asked the Minister for Social Protection if he will respond to correspondence (details supplied); and if he will make a statement on the matter. [70610/25]
View answerWednesday, 10 December 2025
Questions (237)
Written answers
The 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. It supports the employer to cover the costs of significantly adapting the job’s tasks or role.
As a result of Budget 2026, the base rate of the Wage Subsidy Scheme will be increased by €1.20 from €6.30 to €7.50 per hour from April 2026, the top rate to €10 per hour and a middle rate of €8.50 will be in place. These are the first rate increases since 2022.
Employers in all bands will see an increase in the subsidy they receive under the scheme. 90% of employers employ 1-2 employees on the scheme and will therefore receive the €1.20 increase.
Expenditure on the scheme was €23.4 million in 2024. The budget measure to increase rates is estimated to cost an additional €3.1 million in 2026 and €4.1 million in a full year. It is estimated that 1,500 employers and 2,500 employees will benefit in 2026.
As outlined in the details provided by the Deputy, some of the bigger employers had hoped for larger increases in the Wage Subsidy Scheme rates. These are employers on the higher rates of subsidy due to the number of employees they have covered by the scheme.
The six largest employers availing of the Wage Subsidy Scheme received a combined total of almost €4 million or 17% of the total expenditure on the scheme in 2024.
I acknowledge the additional support costs that being a large-scale employer of disabled people may bring. This is why an employer who employs 25 or more employees on the Wage Subsidy Scheme can avail of a grant of €30,000 towards the cost of employing an Employment Assistance Officer. Up to five such officers can be covered per company depending on the number of employees on the scheme. This grant is provided so these officers can assist the relevant employees with their needs in employment and support employers who employ a large number of disabled people.
As part of Budget 2026, the PRSI bands have been increased to ensure that those working full-time on the new National Minimum Wage will fall into the lower band for employer PRSI.
Budget 2026 has also provided for the expansion of Wage Subsidy Scheme to people who acquire a disability while in employment, those who have a progressive or degenerative condition that worsens and to those who transfer from Invalidity Pension to Partial Capacity Benefit.
I trust this clarifies the matter for the Deputy.