Employment and Self Employment Supports

A number of schemes exist to support long-term unemployed people and those in receipt of other payments to return to work:

• Working Family Payment (WFP)

• Back to Work Family Dividend (BTWFD)

• JobsPlus

• Fast Track – Signing off for up to 12 weeks

• Part-time Job Incentive Scheme (PTJI)

• Back to Work Enterprise Allowance (BTWEA)

• Short-Term Enterprise Allowance (STEA)

• Working Family Payment (WFP)

The Working Family Payment (WFP) (formerly known as Family Income Supplement (FIS)) is a weekly tax-free payment available to employees with children, including one-parent families, at work on low pay. The Department of Social Protection (DSP) administers this payment. To qualify for WFP, your average weekly family income must be below a certain amount for your family size. The payment you receive is 60% of the difference between your average weekly family income and the income limit which applies to your family. You cannot qualify for WFP if you are only self-employed - you must be an employee to qualify. To be entitled to Working Family Payment (WFP):

• You must be an employee, in paid employment, you cannot qualify for WFP if you are only self-employed.

• Have at least one qualified child who normally lives with you or is part of a family supported by you. A qualified child is any child under age 18 or aged 18 to 22 if in full-time education.

• Work 38 or more hours per fortnight (any combination of hours that reaches 38 hours each fortnight is acceptable). You can combine your weekly hours with your spouse’s / civil partner’s / cohabitant’s hours to meet this condition. You cannot use time spent in self-employment (or on Community Employment, Tús, or the Rural Social Scheme) to meet this condition.

• Expect to be employed for at least three months.

• Satisfy an Income test.

You must be employed in the Irish State and pay tax and PRSI here. The payment continues for one year (52 weeks) and is not affected by, for example, an increase or a decrease in earnings. The income test to qualify for WFP will count all of your income (including rental income from property) and your spouse’s / partner’s / cohabitant’s income. The following payments are counted:

• Your assessable earnings and your spouse’s / civil partner’s / cohabitant’s assessable earnings. (Assessable earnings are gross pay minus income tax, employee PRSI, Universal Social Charge (USC) and superannuation.)

• Income from working as a home help for the HSE.

• Any extra income you or your spouse / civil partner / cohabitant have from employment (such as pay for overtime, bonuses, allowances, or commission).

• Any income you or your spouse / civil partner / cohabitant may have from self-employment.

• Maintenance – maintenance is currently included in calculating income.

• Income from occupational pensions.

• Income you or your spouse / civil partner / cohabitant may have including Social Welfare payments.

• Rental income from the letting of property or land (the capital value is not assessed).

• All income from Carer’s payments will be assessed.

The following payments are not counted as means:

• Guardian’s payments, Supplementary Welfare Allowance, Domiciliary Care Allowance, Foster Child Allowance, Rent Supplement, Child Benefit.

• Other income that is not counted includes: income from a charitable organisation (unless from employment), unearned income (for example interest on savings), income from providing accommodation to students studying Irish in Gaeltacht areas under a scheme administered by the Minister for the Gaeltacht, and any payment or payments made directly or indirectly by or on behalf of the Minister for Justice, to a person, which has or have been determined in accordance with the Magdalen Commission Report dated May 2013, on the establishment of an ex gratia scheme and related matters for the benefit of those women who were admitted to and worked in the Magdalen Laundries.

The Family Size Weekly Income Limits Annual Equivalents are:

• One child €645 €33,540

• Two children €746 €38,792

• Three children €847 €44,044

• Four children €938 €48,776

• Five children €1,064 €55,328

• Six children €1,180 €61,360

• Seven children €1,316 €68,432

• Eight or more children €1,412 €73,424

If the average net (after tax, PRSI, USC and pension deductions) assessable earnings of your family, along with other family income is less than the set limit for your family size, you will receive 60% of the difference. Here is an example:

Conor and Niamh have 4 children. Conor is employed over 19 hours and earns €250 per week net. If Conor applies for a WFP payment, based on his family size and net wages, his new total household income is calculated as follows:

• Set WFP limit for family of four children €938.00

• Less Conor’s Income - €250.00

• Income Difference €688.00

• Weekly WFP (60% of €594) rounded up to €412.80

• Plus Conor’s earnings + €250.00

• Total household income €662.80

If your partner is claiming a Jobseeker’s payment but is not claiming for you as a Qualified Adult, you can claim WFP if you are working and satisfy the normal qualification criteria. Any WFP payment received may affect your partner’s Jobseeker’s payment.

Here are some important points to consider with WFP:

• WFP is not taxable.

• WFP is paid for 52 weeks while you remain employed for at least 38 hours per fortnight. This includes those participating on the Job Initiative scheme, the Community Services Programme and Part-Time Job Incentive Scheme. At the end of the 52-week period, you will be invited to re-apply.

• If your earnings increase, you will still retain WFP for the rest of the 52- week period. If your family income decreases, your WFP payment cannot be reviewed until the 52-week period has expired.

• A person who job shares and works at least 38 hours over a two-week period and fulfils all the other conditions can also apply for WFP.

• Where both spouse / civil partner / cohabitants are working, their hours can be added together to total 38 hours per fortnight for the household to qualify for WFP. Hours from self-employment are not included.

• The spouse / civil partner / cohabitant with the greatest income is the person who is paid the WFP, but both spouse / civil partner / cohabitants, join in any claim.

• If you have another child, the WFP will be increased.

• The minimum WFP is €20 per week.

• Hours worked in self-employment or on Community Employment / Tús / Partial Capacity Benefit do not count towards making up the 38 hours per fortnight period.

• You cannot claim WFP if you are solely self-employed or on Community Employment or Tús.

• At the end of the 52 weeks, you should re-apply for WFP if you think you are still eligible. Always check – you may be losing out on a payment you are entitled to.

Back to Work Family Dividend (BTWFD): The Back to Work Family Dividend (BTWFD) scheme aims to help families to move from Social Welfare into employment. It will give financial support to people with children who were getting Jobseeker’s or One-Parent Family Payment who take up employment or become self-employed. To qualify for Back to Work Family Dividend (BTWFD), you and your Spouse/ Civil Partner/Cohabitant must sign off any qualifying Social Welfare payments. Back to Work Family Dividend may be paid with certain other Social Welfare payments e.g.- Child Benefit and Working Family Payment. To qualify for Back to Work Family Dividend (BTWFD), you must be signing off your Social Welfare payment (other than Working Family Payment and Child Benefit) for one of the following reasons:

• Being in or taking up employment, or

• Being in or taking up self-employment. (Back to Work Family Dividend is not paid together with Back to Work Enterprise Allowance.)

Back to Work Family Dividend can be paid with Working Family Payment (WFP) and is not considered in the income test for WFP.

BTWFD will last for up to 2 years, if you remain in employment. If you claim a Social Welfare payment at any time within the 2-year period, the BTWFD payment will stop. If your spouse or partner claims a Social Welfare payment, the BTWFD payment will stop.

You may be eligible for Back to Work Family Dividend (BTWFD) if you have at least one qualified child and are getting one of the following payments:

• Jobseeker’s Allowance, Jobseeker’s Benefit or Jobseeker’s Benefit (Self-Employed) for at least 12 months (312 days of unemployment) of which at least 6 months (156 days of unemployment) must have been in the last year, or

• One-Parent Family Payment (OFP), or

• Jobseeker’s Transitional Payment (this is paid to lone parents, persons who are not cohabiting, with children aged between 7 and 13 years old).

You can combine time on a Jobseeker’s payment with time spent on education, training or employment schemes to meet the eligibility requirements. If you went from a qualifying payment to an education, training or employment scheme and then find work, you can go directly onto the BTWFD scheme without having to sign back onto your original payment. If you lose your job and claim a Social Welfare payment, BTWFD stops, but it may re-start if you get a new job – to a maximum of 2 re-starts per claim.

JobsPlus: JobsPlus is an employer incentive which encourages and rewards employers who employ Jobseeker’s and some other Social Welfare recipients. The objective of JobsPlus is to provide a simple, easily understood and attractive scheme that will encourage employers to recruit people who have been out of work for long period and persons with disabilities.

The following categories of Social Welfare recipients qualify for JobsPlus:

• Jobseeker’s (Jobseeker’s Allowance / Jobseeker’s Benefit, Jobseeker’s Benefit Self Employed, Part-Time Job Incentive and persons claiming Jobseeker’s Credits Only)

• Disability Allowance – from January 2023

• Blind Pension – from January 2023

The payment is made to the employer, not the employee. Payment will be made monthly in arrears by electronic fund transfer over a 24-month period. It will not be considered taxable for income or corporation tax purposes for the employer. The eligible JobsPlus employee must be on payroll and subject to PAYE and PRSI (Class A). If approved, the employer will receive the following payments over a 2-year period for each eligible person they recruit and retain in employment.

Grant €7,500 payable over 2 years:

• Aged under 30: Jobseeker, Disability Allowance / Blind Pension recipient.

• Must have 4 months on an eligible claim (104 days) in the previous 6 months.

• Aged over 30 and under 50: Jobseeker, Disability Allowance / Blind Pension recipient. Must have 12 months on an eligible claim (312 days) in the previous 18 months

• Jobseeker’s Transitional Payment: No qualifiying period applies

Grant €10,000 payable over 2 years:

• Aged under 50: Jobseeker, Disability Allowance / Blind Pension recipient

• Must have 36 months on an eligible claim (936 days) in the previous 42 months

• Aged over 50: Jobseeker, Disability Allowance / Blind Pension recipient.

• Must have 12 months on an eligible claim (312 days) in the previous 18 months

In addition to persons qualifying by means of a Jobseeker’s Payment, Disability payment or Blind Pension, persons may qualify on the basis of the following:

• Time spent on a range of other education, training, work placement and activation support schemes can be considered when determining the required number of days in receipt of a qualifying payment.

• Time spent in prison may count towards the qualifying time once entitlement to a qualifying social welfare payment is re-established.

• Jobseekers not in receipt of jobseeker’s payment and signing for PRSI jobseeker credits will be also be eligible once they are the required number of days on the live register.

FastTrack – Jobseeker’s signing off for up to 12 weeks: The Department of Social Protection operates a fast-tracking system for persons in receipt of Jobseeker’s Benefit, Jobseeker’s Benefit (Self-Employed) and Jobseeker’s Allowance, who sign-off to take up full-time employment for a short period of up to 12 weeks. If you have been offered full-time employment, including work for 4 days or more per week, for up to 12 weeks, you will not qualify for a Jobseeker’s payment for this period, but you may benefit from the fast-track process. The fast-track system allows you to sign back on to your claim without the need to go through the process as a new claimant and ensure that your original Jobseeker’s payment is re-instated without delay. To avail of the Fast-Track process you must inform the local Intreo Centre / Social Welfare Branch Office in advance that you are taking up work. If you have been offered full-time employment for up to 12 weeks, including work for 4 days or more per week, you will not qualify for a Jobseeker’s payment for this period – but you may benefit from the fast-track process when signing back on. In seeking to avail of the fast-track process you should provide details and information about the nature of the employment, type of work, hours of work and income you expect to receive from the employment. A letter or job description from the employer could provide this information. When signing back on, you may be required to confirm the detail of the employment and the income you received. The DSP could ask for payslips or bank statements for the period you were employed to confirm the original information you provided and the wages you received. In addition, the DSP may request that you confirm that your circumstances have not changed in relation to your original claim i.e., means, savings, investments or the income or means of your spouse or partner during the Fast-Track period.

If your spouse / civil partner / cohabitant is in receipt of a means-tested payment from the Department of Social Protection (DSP) – such as Jobseeker’s Allowance, Disability Allowance or Carer’s Allowance, and you take up employment using the fast-track process, they must advise the DSP of your income during this period.

Any increase in your income above your Social Welfare rate of payment during the fast-track period could affect their means-tested payment. Failure to disclose this information could cause an overpayment and result in a recovery of that overpayment by the DSP.

If you intend to take up a full-time training course, either paid or unpaid, for up to 12 weeks, you will not qualify for a Jobseeker’s payment for this period but you may benefit from the fast-track process when signing back on to your Jobseeker’s payment.

If you take up unpaid part-time education, you may qualify for the Part-Time Education Option (PTEO) and retain your Jobseeker’s payment.

Where a person is not in receipt of a payment on a training course, but because of the conditions of the training course is not considered by the Department of Social Protection to be available for full-time work, they will not continue to satisfy the conditions for receipt of a Jobseeker’s payment. In seeking to avail of the fast-track process you should, if possible, provide details and information about the course and any income you expect to receive while attending the course. A letter or course description from the body providing the course could provide this information. When signing back on, you may be required to confirm the details of the course, the income youreceived (if any) and confirmation that you have completed or finished engagement with the course. In addition, the DSP may request that you confirm that your circumstances have not changed in relation to your original claim i.e., means, savings, investments or the income or means of your spouse / civil partner / cohabitant during the fast-track period.

If you avail of the fast-track process, you are effectively signing off yourJobseeker’s payment for the period that you are in employment or availing of training.

Part-Time Job Incentive Scheme (PTJI): The Part-Time Job Incentive Scheme is to help a person get back into the workplace in the short-term by doing part-time work under 24 hours a week. If you have been claiming Jobseeker’s Allowance for 15 months or more, you may be able to claim Part-Time Job Incentive Scheme for one year only, instead of Jobseeker’s Allowance. It may be possible to extend the scheme for up to 12 weeks, in exceptional circumstances.

You are eligible to participate on the Part-Time Job Incentive Scheme if you:

• Are in receipt of Jobseeker’s Allowance (JA) for 15 months or more and are receiving a higher Jobseeker’s payment than the appropriate PTJI rate payable for your circumstances. Time spent on Jobseeker’s Benefit might count as part of the 15 month period.

• Have found a job with less than 24 hours employment a week, lasting for at least two months.

• Be fully unemployed prior to taking the PTJI option. It is not possible for a person already in a part-time job to avail of PTJI.

• Have been in receipt of a higher rate of Jobseeker’s Allowance than the appropriate Part-Time Job Incentive supplement payable.

You can stay on the scheme for one year only. This can be extended for up to 12 weeks in exceptional circumstances.

Your will receive a Part-time Incentive Scheme payment instead of your Jobseeker’s Allowance payment.

Payment is made each week by Electronic Fund Transfer. You will be required to sign a declaration form PTJI 2 every 4 weeks to state that you work less than 24 hours each week and return it to the Intreo Centre/ Social Welfare Branch Office.

Your income from employment will not affect your payment on the Part-Time Job Incentive Scheme. However, your combined income from employment and the Part-Time Job Incentive Scheme may affect your secondary benefits.

You can keep your medical card while you are on the PTJI scheme regardless of your earnings for a maximum of 3 years. You can continue to qualify for any existing secondary benefits in payment including Rent Supplement, but your earnings will be assessed against your supplement.

If you are on the Part-Time Job Incentive Scheme, you are still required to look for full-time employment.

Back to Work Enterprise Allowance (BTWEA): The Back to Work Enterprise Allowance encourages unemployed people and those receiving other qualifying Social Welfare payments to take up self employment opportunities by allowing them to retain a proportion of their Social Welfare payment, plus secondary benefits.

To apply you should meet with an Employment Personal Adviser who will conduct a brief initial assessment with you to assess your suitability for the scheme. Once this is completed you will be referred to a Local Development Company (LDC) who will assist you in discussing your options and explore the viability of your business idea. The LDC will assist with preparing your business plan to outline the new enterprise. Once the plan is completed it will be returned to the Employment Personal Adviser who will review the proposal and then make a recommendation to the Deciding Officer.

The amount of time you can participate on the BTWEA is 2 years. You will receive:

• 100% of your Social Welfare payment in the first year, and

• 75% of your Social Welfare payment in the second year

Your BTWEA payment will be based on the rate of payment at the time of your application for the Back to Work Enterprise Allowance. If the qualifying Social Welfare payment is not being paid at the full rate you will only receive 100% and 75% of this reduced rate during the period of the BTWEA. The Back to Work Enterprise Allowance is paid at a Post Office or directly into your current, deposit or saving account in your bank or building society account each week.

There are additional supports available:

• Enterprise Support Grants, of up to €2,500 are available to support applicants who wish to engage in viable self-employment enterprises.

• Local Enterprise Boards develop enterprise in their area and are responsible for grant aiding and supporting new businesses with less than 5 employees

Your income from self-employment will not affect your payment on the Back to Work Enterprise Allowance. However, your combined income from self employment and the BTWEA may affect your secondary benefits.

You are not allowed to enter into any paid employment as an employee, either in a full-time or part-time capacity while in receipt of BTWEA.

If you have previously participated in the BTWEA Scheme and have exhausted your entitlement to the Back to Work Enterprise Allowance (BTWEA) scheme, you must wait five years to participate in the Short-term Enterprise Allowance Scheme.

If you are accepted on to the Back to Work Enterprise Allowance, you must register as self-employed.

The BTWEA is an administrative scheme. This means that you cannot appeal a refusal to engage in the scheme to the Social Welfare Appeals Office. However, you can ask the Department of Social Protection to review your application if you feel that you have been wrongly refused the allowance.

Short-Term Enterprise Allowance (STEA): The Short-Term Enterprise Allowance Scheme (STEA) is designed to provide immediate support for someone who loses their job and qualifies for Jobseeker’s Benefit (JB) or Jobseeker’s Benefit Self-Employed (JBSE) but wants to start a business. It provides an incentive to customers of JB / JBSE to avail of self-employment opportunities by allowing them to retain their appropriate JB / JBSE rate. The maximum duration of the allowance is the same as if the person remained on Jobseeker’s Benefit / Jobseeker’s Benefit Self-Employed until their entitlement expires.

You will qualify for the STEA if you immediately prior to commencing selfemployment:

· Have been awarded Jobseeker’s Benefit or Jobseeker’s Benefit (Self-Employed) and

· Have made an application for STEA before engaging in self-employment.

To set up a new enterprise the applicant must be in a position to start up a viable business as a selfemployed person.

A Qualified Adult on a Jobseeker’s Benefit or Jobseeker’s Benefit (Self-Employed payment) does not fulfil the eligibility criteria of this scheme. To examine initial suitability for STEA, a meeting must be conducted on a one-to-one basis with the Customer and the Employment Personal Adviser. If eligibility for STEA is established, the Employment Personal Adviser must complete an assessment of suitability form which must be signed by both the Employment Personal Adviser and the applicant.

The Short-Term Enterprise Allowance replaces your Jobseeker’s Benefit. It will be paid at the same rate as yourJobseeker’s Benefit / Jobseeker’s Benefit (Self-Employed), including any increases for Qualified Adult / Qualified Child.

The amount of time you can participate on the Short-Term Enterprise Allowance is directly related to the amount of time left on your Jobseeker’s Benefit / Jobseeker’s Benefit (Self-Employed) payment.

The Short-Term Enterprise Allowance can be paid either into a Post Office or your current, deposit or savings account in your bank or building society each week.

In addition to income support (your weekly payment), you can also get financial support with the costs of setting up your business. These supports are provided under a scheme called the Enterprise Support Grant (ESG). The Department of Social Protection's Employment Personal Adviser will assess your application and eligibility for supports under the Enterprise Support Grant (ESG).

Your income from self-employment will not affect your payment on the Short-Term Enterprise Allowance.

Losing your job – Short-time: A short-time situation occurs when there is a reduction in the amount of work available, and applies where the reduction to your pay or hours is less than half the normal weekly amount of your normal pay / hours. Short-time is a change to your terms and conditions of employment and must be agreed with you. This must be a temporary situation and your employer must notify you before the reduction in hours / pay starts.

Losing your job – Lay off: A lay-off situation arises where your employer is temporarily unable to provide work for you. Your employer can lay you off if it is in your contract of employment or it is custom and practice in your workplace. Lay-off is a change to your terms and conditions of employment and must be agreed with you, unless it is a term of the contract or if it is custom and practice in the industry. This must be a temporary situation and your employer must notify you before the reduction in hours / pay starts.

Losing your Job – Redundancy (Short-Time and Lay-off): If a lay-off or a short time situation exists (as described above) and has continued for 4 weeks or more or for 6 weeks in the last 13 weeks, you may give your employer a notice in writing of your intention to claim redundancy.

Losing your Job – Claiming a Jobseeker’s payment: If your hours of work are reduced so that you are unemployed for at least 4 out of 7 consecutive days you may be entitled to a Jobseeker’s payment from the Department of Social Protection. Access to a Jobseeker’s payment is not automatic, you must satisfy the qualification conditions associated with a Jobseeker’s payment. If your hours of work are reduced and you seek to claim a Jobseeker’s payment there are certain conditions:

· You must be genuinely seeking full-time employment, not just part-time employment to make up the days you have ‘lost’

· You must be able to provide proof that you are genuinely seeking full-time employment as may be requested by the Department of Social Protection (DSP) in support of your claim

· You must engage with the Department of Social Protection (DSP) in relation to any scheme or programme of employment or work experience, a course of education, training or development, which is considered appropriate having regard to your education, training and development needs and of your personal circumstances

· Satisfy the PRSI requirement for Jobseeker’s Benefit (JB) and satisfy the Habitual Residence Condition (HRC) and Means Test for Jobseeker’s Allowance.

Losing your Job – Working Family Payment (WFP): If you lose part of your job, and you have dependent children, you may be able to claim the Working Family Payment (WFP) which is a tax-free payment for employees who work at least 38 hours per week. You cannot claim the Working Family Payment (WFP) if you are claiming either Jobseeker’s Benefit (JB) or Jobseeker’s Allowance (JA).