On 27^th March the Government announced some changes to the wage subsidy and leave payment scheme.

At 3pm on Friday 27^th March the leave payment scheme was discontinued. This scheme is no longer fit for purpose given that our country is now in lockdown. Applications that were submitted prior to this cut off time will continue to be processed and paid.

The Government is looking at ways to support essential services employees who may require sick leave due to Covid-19.

Grant Robertson also clarified that employers should be passing on the full wage subsidy amount to workers, except in the case where the employee’s normal income is less that the level of the subsidy.

The Government has advised that wherever possible employers should pay employees 80% of their normal salaries, however if this is not possible then at least the full subsidy needs to be passed on.

If you or your team need any help navigating this process or have any questions around qualifying for the wage subsidy, please contact us.

For more information about the wage subsidy declaration please see:

https://www.workandincome.govt.nz/online-services/covid-19/declaration-wage-subsidy.html

Ministry of Social Development also have a handy section around commonly asked questions:

https://www.workandincome.govt.nz/products/a-z-benefits/employer-questions-and-answers.html#null