The Wage Subsidy Scheme is run by the Department of Social Protection. It gives employers outside the public sector a subsidy towards the wages of disabled employees whose job has to be adapted because of a disability or health condition. 

The scheme was restructured on 6 April 2026. It now pays between €7.50 and €10.00 an hour, depending on how many people an employer has on the scheme. The previous rates ran from €6.30 to €9.45 across six bands. 

What this means for your business 

If a job requires an employee to carry 20kg during their working hours, and an employee can only carry 5kg because of a disability or health condition, the scheme pays the employer towards the cost of adapting that role, or towards the shortfall in productivity that the remaining 15kg represents. 

The subsidy is paid to the employer, who pays the employee as normal. The employee is paid the going rate for the job, which must be at least the national minimum wage, and keeps the same conditions of employment as everyone else. 

Only the employer who directly employs the person can claim. Employment agencies, contractors and other third parties cannot claim it on an employer’s behalf. 

Important: An employer receiving the wage subsidy for an employee cannot get any further State support towards that same employee’s employment costs. 

Eligible employers 

To qualify, an employer must: 

• be a non-public sector employer 
• be tax compliant 
• employ at least one disabled person for 15 to 39 hours a week 

An employer can offer more than 39 hours a week, but the subsidy can only be claimed for up to 39 hours. 

The employee must have the same conditions of employment as other staff, including: 

• PRSI contributions 
• tax deductions 
• annual leave and other leave entitlements 
• the going rate for the job, which must be at least the statutory minimum wage 

Employees covered 

An employee can be covered if they: 

• are 18 or over, up to pensionable age 
• have a disability or health condition that limits their ability to work and means the job’s tasks or role must be significantly adapted 
• have a contract of employment for at least 6 months 
• work at least 15 hours a week 

They must also meet one of the following: 

• they are a new employee, or an existing employee who has been employed for less than 12 months 
• they are taking up or returning to work on Partial Capacity Benefit 
• they acquired a disability in the last 12 months that reduced their ability to work 
• they have a degenerative or progressive condition and their ability to work has reduced in the last 12 months 
• they have transferred from Invalidity Pension to Partial Capacity Benefit 

Proof of disability 

An employee getting any of the following payments needs no further medical assessment: 

• Blind Pension 
• Disability Allowance 
• Disablement Benefit, awarded at 20% or more for life 
• Partial Capacity Benefit 

An employee does not need to be on a disability payment to qualify. If they are not getting one of these payments, their disability or health condition must be confirmed by a recent specialist’s report or a doctor’s letter. 

Rate of subsidy 

The rate depends on how many employees the employer has on the scheme. The following rates apply from 6 April 2026. 

Strand 1 

The base rate is €7.50 per hour, paid to employers with 1 to 6 employees on the scheme. Over a 39-hour week this comes to a maximum of €15,210 a year for each employee. 

Strand 2 

The rate rises as an employer takes on more employees under the scheme. 

Strand 3 

An employer with 25 or more employees on the scheme can apply for a grant of €30,000 a year towards the cost of employing an Employment Assistance Officer. These employers also receive the €10.00 hourly rate under Strand 2. 

Reminder: A company can have up to 5 Employment Assistance Officers funded under Strand 3. 

Claiming and payment 

The department creates a Wage Subsidy Request on Welfare Partners for each employer workplace every 4 weeks. The employer records the hours worked and the gross wages paid, then submits the request. 

Requests must be submitted within 12 weeks of the date of issue. Payment can be withheld on requests submitted after that. Payment is made by electronic funds transfer to the bank account the employer supplied. 

Welfare Partners also lets employers review the requests they have submitted, the payments attached to them, and their scheme claim and participant details. 

How to apply 

The employer and the employee each have steps to complete. 

1. The employer completes the employer application form (WSS1ER) and an Electronic Funds Transfer bank mandate. 
2. The employee completes the employee application form (WSS1EE) and meets an Employment Services Officer from the department to register on the WSS system. 
3. The employer and employee agree that the employee’s disability or health condition limits their ability to do the job and that the role must be significantly adapted, then complete the Work Adaptation Report Form (WSS2). 
4. The employer provides up-to-date tax clearance. For electronic tax clearance this means a tax clearance access number and a printout of the tax clearance application result. The subsidy cannot be paid without it. 
5. The employer provides a signed contract of employment for at least 6 months, setting out the gross wage, job description (and person specification if available), annual leave, sick leave, and maternity or paternity leave entitlements. 

If the application is approved, the department writes to both the employer and the employee to confirm the terms of approval. 

Forms 

• Employer Application: Wage Subsidy Scheme (WSS1ER) 
• Employee Application: Wage Subsidy Scheme (WSS1EE) 
• Work Adaptation Report Form: Wage Subsidy Scheme (WSS2) 
• Application Form for Strand 3: Wage Subsidy Scheme (WSS4) 
• Supplier Set-up Form (V07-2025) 
• Wage Subsidy Scheme: Confidential Medical and Functional Capacity Report (WSS DCMA) 

All forms and full scheme details are on gov.ie: Wage Subsidy Scheme 

For more information, employers can contact the Workplace Supports staff in their local area.