Wage subsidies
From 17 March for the next 12 weeks, wage subsidies are available for employers affected by COVID-19 and struggling to retain employees. Employers may apply who suffer (or project they will suffer) a 30% or more decline in revenue for any month between January 2020 and June 2020 (compared to last year). Applications may also be based on forecast revenue loss within the period.
The subsidy is:
- $585.80/week for a full time employee (20 hours or more);
- $350.00/week for a part time employee (less than 20 hours).
The lump sum payment covers 12 weeks.
Under the scheme, employers:
- undertake to continue to employ affected employees at a minimum of 80% of their income (eg 4 out of 5 days of the week) during the subsidy period
- must have been active to lessen the impact of COVID-19 (e.g engaged with their bank or financial advisor) and sign a declaration form to that effect
You can apply for the subsidy through the Work and Income website. MSD aims to pay no later than five working days from when applications are received.
Leave Payments
A leave payment scheme runs for the next 8 weeks, providing support to businesses with employees, contractors and the self-employed staff unable to work because they are in isolation, or sick, or caring for others with COVID-19. The payment amounts are the same as those for the wage subsidies and can be backdated to 17 March 2020.
This does not affect any paid leave entitlements owed and is available even if an employee is on paid leave for part of the period. It is not available to those who can work from home, and whose employers can pay normally.
Employers can apply for the leave on behalf of any self-isolating or sick employee. The Ministry of Social Development (MSD) pays employers, who are required to pass it on to affected employees. MSD will pay on a fortnightly basis once it receives an application.
Employees, self-employed, and contractors legally working in New Zealand are eligible. Those who self-isolate must do so in accordance with public health guidance and register with Healthline. Those who went overseas from 16 March 2020 are not eligible for this payment for self-isolation on their return. Workers ill with the virus can only access the scheme for time spent on sick leave from 17 March 2020.
