The Covid-19 payment support schemes for workers will be extended until spring 2021.
The Sunday Times reports that pandemic unemployment payment and the wage subsidy scheme will be extended beyond August as part of next week’s €3 billion July stimulus package.
The wage subsidy scheme allows employers that have experienced significant losses during the Covid-19 pandemic to continue to pay their employees, with the State paying up to 85% of wages.
The scheme has cost the State more than €2 billion since March and is expected to be expanded to cover thousands of seasonal workers. However, the 85 per cent rate is likely to be reduced.
The pandemic unemployment payment is a welfare payment of €350 a week for those who have lost their jobs due to the Covid-19 crisis.
The number of people claiming the Covid-19 unemployment payment dropped from 600,000 in May to 350,000 last week.
Those who had been working part-time before the crisis were moved from €350 a week to the standard payment rate of €203.
It is understood the Government will also look to scale down the rate further by examining whether to incrementally cut the top rate from €350 to €300 and then to €250.
The Cabinet will finalise the July stimulus package on Tuesday, which aims to kickstart the economy and help sectors hit by the Covid-19 shutdown.Tags: