In response to COVID-19 the Government is acting to support the economy with a $12.1 billion support package.
How businesses can access COVID-19 support
UPDATE: As of 3pm Friday 27 March 2020, the previous separate sick leave payment scheme has been folded into this Wage Subsidy Scheme. The original sick leave scheme was designed when few people were in self-isolation. The Government is working on arrangements for those in essential work who require sick leave due to COVID-19.
Wage subsidies are available for businesses in all sectors and regions that can show a 30% decline in revenue for any month between January and June 2020 compared to the year before (including projected revenue).
Self-employed people with variable monthly incomes are eligible if they can demonstrate revenue loss against the previous year’s monthly average (eg. 30% loss of income attributable to COVID-19 comparing March 2020 to the average monthly income in the period March 2019 to March 2020).
If eligible, employers would be paid $585.80 per week for full-time staff, and $350 for part time. They will be paid in a lump sum.
The support will be available for twelve weeks.
Businesses who are collecting the wage subsidy are now required to pass on 100% of the value of the subsidy to the worker they are collecting it for, for the entire 12 week period. Business may not collect the subsidy and then lay off the worker they have collected it for, or only pass on a portion of the subsidy. Even if a business is closed - if they are collecting the subsidy they must pass it on.
Business are encouraged to continue to try to top up wages to 80% if they are able but this is not mandatory.
The form is very simple, and the expectation is that payments will be expedited quickly. You must provide the following information:
- Your IRD number.
- Your business name.
- Your business address.
- The names of your employees.
- Your employee IRD numbers.
- Contact details for your business and your employees.
More information: Work and Income
Wage Subsidy Cap Removed
The Government has removed the cap on wage subsidies that can be paid to employers affected by COVID-19. The cap of $150,000 per business is gone.
This applies to all New Zealand employers, contractors, sole traders, self-employed people, registered charities and incorporated societies. You are now able to apply for a wage subsidy for all your staff.
If you have already applied for and been granted the wage subsidy for your employees and MSD has capped the amount paid, you don’t need to do anything because we will top up the difference.
If you have applied for the wage subsidy for your staff, and claimed only enough to meet the cap, once you have used this subsidy, you can reapply.
If you’re not sure what assistance may be available, don’t know who to contact for help, call the free government helpline on: 0800 779 997 (8am–1am, 7 days a week) or on 0800 22 66 57 (9am-5pm, Monday-Friday).
The Taranaki Chamber team are now working remotely. You can continue to contact the Chamber for business enquiries, advice and support. Alternatively, you can contact a specific team member via email or mobile..