fbpx
cash in hands

6 key points about Jobsplus – the cash back scheme for employers creating jobs

cash in hands

 

The basics

In 2013 the Government did away with the Employers PRSI exemption scheme and introduced the Jobsplus scheme. Another labour market activation scheme targeted at the long term unemployed which is to be welcomed. The only problem is that very few people have heard about it. At least three small business owners expressed surprise to me in the last month when I started describing how our firm was utilising it.

 

How it works

The eligibility of the scheme is largely unchanged from the previous one but the difference is in the financial incentive for employers. Previously you were exempt from the Employers PRSI on the salary over an 18 month period. Now you pay all liabilities but get a kickback from the state every month. The kickback you receive is increased if the employee was more than 2 years unemployed.

The scenario

Jack was over a year on the dole before doing a Jobbridge internship with Tobar Limited. Jack did so well that after the internship Tobar Limited offered him a job. After a successful Jobsplus application Tobar are paying €18,300 per annum for Jack and are paying an additional €1,600 in employers PRSI at 8.5%. Total costs of employment €19,900. The state repays €10,000 to Tobar over 2 years which is the maximum payable. This is an effective subsidy of 25% of the cost. If Jack had been signing on for only one year the subsidy would be reduced to €7,500.

Applying for it

You need to be tax compliant and be creating a new job, that lasts for 2 years, for a candidate that has been unemployed for 12 months or more. A period on the Jobbridge internship programme counts towards the unemployment. Other than that it is very straightforward with an online application being made first by the employer and then be the employee. You will be notified then with how much you will be refunded.

The verdict

This is a useful incentive and one that is not widely known about. Needless to say it is a valuable thing for a long term unemployed person also and for the state that will reduce its number of dependents. It is a win-win-win initiative and we should all be shouting about it.

Call us on 091 450705 or send us an email at info@bradanconsulting.ie if you want to learn more.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Newsletter

Keep up to date — get updates with latest topics