NZ Wage Subsidy Extended - Available from 10th June 2020

New Zealand Government has extended the Wage Subsidy to support businesses and employers including sole traders after their current 12 week subsidy comes to an end.
Note : You can't apply for the Wage Subsidy Extension for an employee until their 12 week Wage Subsidy has finished.

The Extended subsidy rates would be same as before and will provide 8-week lump sum payment per named employee. The Wage subsidy extension must be used to pay employees’ wages and receiving it does not change existing employment law obligations.
The Wage Subsidy Extension will be available from 10 June 2020 until 1 September 2020 so employers can keep paying their employees.

Key points:

• You must have had, or expect to have, a revenue loss of at least 50% for the 30 days before you apply, compared to the closest period last year.

• It will cover 8 weeks per employee from the date you submit your application.

• It will be paid to you as a lump sum at the same weekly rate as the Wage Subsidy.

• You'll need to agree to certain obligations, such as to:

  • pass the subsidy on to your employees

  • retain your employees for the duration of the subsidy

  • do your best to pay your employees at least 80% of their normal pay

  • take active steps to mitigate the impact of COVID-19 on your business.

The Government won’t be able to pay for more than one COVID-19 payment (eg. Wage Subsidy, Leave Support Scheme, Wage Subsidy Extension) for the same employee at the same time.

Source: WINZ