The details of the Employment Subsidy Scheme, which aims to protect more than 27,000 jobs, have been announced.
The Government will provide subsidies to companies in the productive sector of the economy totalling €250m.
Tánaiste Mary Coughlan announced the scheme and said it will support the maintenance of vulnerable jobs and help the economy retain its productive capacity.
She added: 'In providing this support, the Government is optimistic that jobs will be saved and that vulnerable enterprises will benefit and will survive through the current challenging economic period.'
The scheme will provide a grant of up to €9,100 per worker over 15 months to help companies meet their wage bills.
The subsidy will be available to qualifying exporting enterprises in the manufacturing or internationally-traded services sectors.
The scheme will provide for a maximum subsidy of €200 per week per full-time employee for the first six months.
This will then reduce to €150, €100 and €50 for each of the following 13-week periods.
To qualify for the scheme companies must not have been in difficulty on 1 July 2008, must employ at least ten full-time staff and must be likely to have to consider redundancies within 12 months.
They must also meet other financial criteria.
Applications for the scheme can be made from today until the 4 September 2009.
The period the employment subsidy will cover will begin on the 24 August 2009.
Payments will be made to successful applicants three months in arrears with the first payment being made this December.
Employers group IBEC described the scheme as a ‘welcome initiative’ but said it did not go far enough in the short term.
IBEC'S Director of Business Sectors Pat Delaney said he believed the scheme would be very quickly over-subscribed.
Mr Delaney said IBEC believed the scheme needed to be funded by more than €1bn.
He said €250m was a very ‘encouraging start’, it showed the Government's intention, but whether or not it was enough to overcome the level of threat that we are under currently is questionable.
Govt to consider tourism sector investment
Tánaiste Mary Coughlan has said the Government is considering an investment scheme to help those working in the tourism sector.
Minister Coughlan said the tourism sector was 'particularly vulnerable' at this time and companies had expressed the view that they wished to participate in the Employment Subsidy Scheme.
Companies engaged in tourism activities are not currently eligible for the new scheme.
Minister Coughlan said she was working with Minister for Arts, Sports and Tourism Martin Cullen in order to take a 'whole of Government' approach to the tourism sector.
She said they were considering whether the sector needed a similar subsidy scheme or some other form of investment.
