A day before the new Employment Wage Subsidy Scheme comes into effect, Revenue has confirmed that certain directors will be entitled to claim the payment.

It follows a decision by the Minister for Finance Paschal Donohoe on Friday.

In order to be entitled to the subsidy, the employer to which the director is connected must meet the eligibility criteria for the EWSS.

The director concerned must be on the payroll of the employer and must have been paid wages that were reported to Revenue through payroll between 1 July last year and 30 June this year.

However, the EWSS will only be payable in respect of one eligible company if a director is on the board of more than one firm.

In such circumstances, the director will have to elect one company through which their claim will be made.

"The election will be deemed to be made on the first submission of an EWSS claim in respect of the proprietary director," Revenue said in a statement.

"Once an election is made it cannot be changed during the term of the scheme."

The EWSS is replacing the Temporary Wage Subsidy Scheme which was introduced as the Covid-19 pandemic hit Ireland.

Running until the end of March next year, it will allow employers to seek wage subsidies for a broader range of workers, including new hires and seasonal workers.

However, the maximum subsidy per worker will fall from €410 to €203 per week and instead of being a percentage of the employee's net pay, there will be two fixed rates - €151.50 or €203.

According to Revenue, over 16,000 employers have registered for the scheme over the last week and more than 15,000 tax clearance applications have been made.

"Eligible employers who wish to claim EWSS need to register for the scheme in advance of making their submission through Revenue's Online Service, ROS," said Orla Fitzpatrick, head of Revenue's Medium Enterprises Division.

"Such employers must have an active PAYE/PRSI registration, a bank account linked to that registration and they must also have tax clearance," she added.