Wage Subsidy Scheme - August 2021

As the country went into lockdown from midnight yesterday, the government has announced wage subsidy schemes for kiwi businesses to keep them afloat. The Wage subsidy scheme would be available for businesses across New Zealand. The subsidy is available nationally when there’s a regional or national move to alert level 3 or 4 for a period of 7 days and helps eligible businesses keep paying staff and protect jobs.

Wage Subsidy Scheme allows eligible employers anywhere in the country to apply for support if they expect a loss of 40 per cent of revenue as a result of the alert level increase announced on 17th August 2021.

The wage subsidy rates have also been increased since the scheme was first introduced in March 2020. Businesses will now be eligible for $600 per week per full-time equivalent employee and $359 per week per part-time employee.

The wage subsidy will be paid as a two-week lump sum and applications open on Friday August 20, with first payments usually available after 3 days.

A Resurgence Support Payment is available if firms incur a loss of 30 per cent of revenue as a result of the alert level increase. The RSP is worth up to $1500 plus $400 per full-time equivalent employee, up to a maximum of 50 full-time employees (so up to a total of $21,500).

The Leave Support Scheme provides a two-week lump sum payment of either $585.80 per week for full-time workers, or $350 per week for part-time workers, who must self-isolate and cannot work from home.

The Short-Term Absence Payment (STAP) provides a one-off (once per 30 days) $350 payment for workers who must miss work due to a COVID-19 test and cannot work from home.

More information for COVID-19 Leave Support Scheme can be found here.

More information on the latest wage Subsidy can be found here

Source: NZ Herald