Eligible businesses can apply for a two-week wage subsidy of up to $1,171.60 per worker from this week to help cover wages as part of the Government’s plan to protect jobs and support the economy.

Applications for the new wage subsidy opened on the MSD website from 1pm last Friday. The new wage subsidy and the current Wage Subsidy Extension – which is open for new applications until 1 September – will support an estimated 930,000 jobs.

To be eligible, a business must have experienced, or is projected to experience, a 40% revenue drop across a 14-day period between 12 August and 10 September when compared to a similar period last year.

Social Development Minister Carmel Sepuloni said MSD has advised it will make payments within 5 days for most applications. The new wage subsidy, and the expected increase in applications for the Wage Subsidy Extension, which is open for applications until 1 September, will be funded by an underspend on the Wage Subsidy Extension. This means the Government does not need to access the $14 billion remaining in the COVID Response and Recovery Fund for the payments.

Other eligibility criteria are the same as for the Wage Subsidy Extension. All existing employment law continues to apply. Further information can be found here: www.workandincome.govt.nz/covid-19/resurgence-wage-subsidy/index.html

Sepuloni added that the Government’s changes to the COVID Leave Support Scheme also come into effect from last Friday.

To be eligible for the Leave Support Scheme the employer must meet eligibility criteria and have employees who can’t work because they have either tested positive for COVID-19, have had contact with someone who has COVID-19, or are at higher risk (or someone in their household is at higher risk) if they get COVID-19 and have been recommended to remain at home. For further details and to apply visit: www.workandincome.govt.nz/covid-19/leave-support-scheme/index.html

-TIN Bureau