Date posted: 17/08/2020 3 min read

Applications open for further extension of NZ wage subsidy

The Government has announced a national two-week wage subsidy for businesses financially impacted by the resurgence of COVID-19 and changes to COVID Alert Levels.

In Brief

  • The Resurgence Wage Subsidy is a two-week payment available throughout the country for businesses not already receiving the Wage Subsidy, the Wage Subsidy Extension or using the Leave Support Scheme
  • Applications can be made from 1pm on 21 August 2020
  • The COVID-19 Essential Workers Leave Support scheme widened to support all employers

The Resurgence Wage Subsidy is a two-week payment available nationally for qualifying businesses, including self employed, who have had, or expect to have, a revenue drop of at least 40 percent for a continuous 14-day period between 12 August to 10 September when compared to a similar period last year.

The drop in revenue must be attributable to COVID-19. Businesses cannot receive the Resurgence Wage Subsidy if they are receiving other COVID-19 payments like the Wage Subsidy, Wage Subsidy Extension or the Leave Support Scheme for an employee at the same time.

The subsidy is available per employee for a period of two weeks from the date of application at a flat rate of:

  • $585.80 for people working 20 hours or more per week (full-time rate)
  • $350.00 for people working less than 20 hours per week (part-time rate). Applications can be made from 1pm on 21 August 2020 until 11.59pm on 3 September 2020.

Leave Support Scheme

Businesses applying for the Leave Support Scheme (formerly COVID-19 Essential Workers Leave Support) before 1pm on 21 August 2020 have to meet a revenue test. After that date a revenue test will not apply.

The Leave Support Scheme is to help pay any employees who meet certain health criteria, including those who can't work and who have COVID-19 or have had contact with someone who does and are self isolating.

The 'COVID-19 Essential Workers Leave Support' was only available to essential businesses. The Leave Support Scheme' is available for all employers who meet the criteria.

Related Links

Wage Subsidy Extension

Applications for the Wage Subsidy Extension close at 11:59pm on 1 September 2020. This is an eight-week payment for qualifying businesses.

Read about the Wage Subsidy Extension

COVID-19 Essential Workers Leave Support

This scheme is available for employers, including sole traders, to pay their employees who can't work because of COVID-19.

Read about the scheme