Venkat Raman
Auckland, August 21, 2021
Other relief measures are also coming
The Ministry of Social Development (MSD) and Employment has commenced payment of Wage Subsidy to eligible employers as the country moved to lockdown Level 4 obliging most ‘non-essential’ businesses to down their shutters but avoid layoffs.
Deputy Prime Minister and Finance Minister Grant Robertson said that the Wage Subsidy scheme is available to all companies irrespective of their size or number of employees.
“The government decided to move to Alert Level 4 for New Zealand starting at 11.59 pm on Tuesday (August 17, 2021) initially for three days, except for Auckland and the Coromandel Peninsula, where it is likely to be at level 4 for seven days as a result of a new case in the community in Auckland. Social Development and Employment Minister Carmel Sepuloni and I have activated a number of business support measures to provide certainty to businesses and workers and ensure we get money out the door quickly to protect jobs and keep firms’ operating,” he said.
The measures include (1) The Wage Subsidy Scheme which is available nationally when there is a regional or national move to Alert Levels 3 and 4 for seven days to help eligible businesses keep paying staff and protect jobs. The rates have been raised to reflect increased wage costs (2) The Resurgence Support Payment made to help support businesses or organisations with one-off costs due to a Covid-19 alert level increase to level 2 or higher. This is available to eligible firms at the same time as the Wage Subsidy.
More information, the method of application for the Wage Subsidy and other details are available here. Details of obtaining the Resurgence Support Payment can be accessed here.
Other existing support for individuals includes the Leave Support Scheme and Short-Term Absence Payment rates have also been increased in line with the Wage Subsidy Scheme, as each of these payments is set at the same rate.
About the Wage Subsidy Scheme
This Scheme allows eligible employers anywhere in the country to apply for Wage Subsidy if they expect a loss of 40% of revenue as a result of the Alert Level increase. The Wage Subsidy rates have been increased to reflect the increase in wage costs since the scheme was first used in March 2020. Businesses will 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. Applications opened on Friday, August 20, 2021 with the first payments usually available after three days.
Resurgence Support Payment
Resurgence Support Payment is available if firms incur a loss of 30% of revenue as a result of the Alert Level increase. This 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).
Leave Support Scheme
This 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. More information is available here.
Short-Term Absence Payment
This provides a one-off (once per 30 days) $350 payment for workers who miss work due to a Covid-19 test and cannot work from home. Further information about this payment is available on the website of the Ministry of Social Development here.
Strong economic response
Mr Robertson said that the government remains well-placed to respond to Covid-19.
“We have over $1 billion left over from the money set aside for Wage Subsidy Scheme and the Resurgence Support Payment. If necessary, we can draw from the Covid-19 Relief and Recovery Fund which has about $5 billion. Our net debt position is much lower than forecast and well below other countries,” he said.
He said that a strong public health response has given New Zealand a strong economic response and put economic activity back to pre-Covid levels.
“Our response will continue to be based on those principles,” Mr Robertson said.
For more information, please visit https://covid19.govt.nz/
