EWSS or PUP?

Trying to decide if it is better for you to claim EWSS or get your employees to claim PUP?

If the business has remained open and the employees are still working albeit sorter hours, eg restaurant which is still serving takeaway, employees cannot claim PUP. EWSS can be claimed

If the business is closed and the employees have been temporarily laid off you have two options.

Employees can claim the PUP directly from DEASP or the business can claim the EWSS via Revenue if the business meets the eligibility criteria.

You do not need to cease the employee’s contract if they have been temporarily laid off.

How to Decide on EWSS or PUP

If you are closed but wish to retain the link with your employees there are two factors to consider.

  1. How much do you intend to pay the employee.
  2. How much was the employees average weekly net wage in either Jan/ Feb 2020 or their average weekly wage in 2019. Pup is assessed on the greater.

EWSS – Employment Wage Subsidy Scheme

Although EWSS has been amended (as of Oct 20th 2020) to align with PUP until the end of January 2021 there are some subtle differences.  EWSS has 5 payment bands and associated rates. The rates below apply on employee’s earnings until the end of January 2021:

  • From 0 to €151 = €0
  • More than €151 and less than €203 = €203
  • More than €203 and less than €300 = €250
  • More than €300 and less than €400 = €300
  • More than €400 and less than €1,462 = €350

The main aim of this scheme is to ensure where possible employees retain their link with their employer rather than become unemployed. These revised rates will run to the end of January 2021. 

PUP – Pandemic Unemployment Payment

The Pup has just 4 payment bands as follows:

  • From €0 to €199.99 = €203
  • More than €200 to €299.99 = €250
  • More than €300 to €399.99 = €300
  • More than €400 or over = €350

If employees claim PUP they are assessed as per their earnings in Jan/ Feb 2020 or the full 2019 year. The greater weekly average earnings amount is used.

The employee does not need to contact the DEASP about their earnings. The DEASP has access to this information from Revenue.

Examples

  1. If the average gross weekly earnings were €160 in 2019 and €210 in 2020, the figure of €210 will be used and the employee would receive €250. The same amount would be received on the EWSS.
  2. The average weekly earnings were €350 in 2019 and €390 in 2020. The Pup payment will be €300. If the company pays the employee €400 the company may claim €350. However this is at a cost to the company of €50.
  3. The average weekly earnings were €350 in 2019 and €405 in 2020. The Pup payment will be €350. If the company pay the employee €350, only €300 can be claimed via EWSS. The company must pay the employee at least €400 in order to claim €350.
  4. The employee did not work in 2019 or Jan/ Feb 2020 but is now earning €400 a week. They are likely to be rejected for the PUP but can apply for the unemployment benefit. On EWSS the company can claim €350 if the employee continues to be paid €400.

The employee does not need to contact the DEASP about their earnings. The DEASP has access to this information from Revenue.

Payment Timeline

PUP is paid weekly.

From the start of November EWSS will be paid within a few days. The payment will only be made if a payrun is marked as deemed/ accepted in ROS.

A payrun can be marked as deemed under Statement of Account in the returns section of the My Services page in ROS.

EWSS Eligibility

If you are now considering using the EWSS please read the guidance on EWSS and the Parolla guide to setting up EWSS