wage subsidy extension, bag of money passing hands15/05/2020

A wage subsidy extension will be available for employers who continue to be significantly impacted by the COVID-19 crisis. It is an additional lifeline to allow employers to keep paying their employees for an additional 8 weeks when the original 12-week wage subsidy ends.

The wage subsidy extension can only be applied for when an employer’s original 12-week wage subsidy period has finished. Applications will be open from 10th June 2020 until 1st September 2020. It will be paid to businesses in one lump sum at the same two rates as the original subsidy (20 hours or more, and less than 20 hours).

In order to qualify for the extension, businesses – including sole traders – must have experienced a minimum 50% reduction in revenue for the 30 days prior to applying, compared to a similar period. As per the original subsidy, employers must agree to retain their employees for the duration of the subsidy and make their best efforts to pay employees at least 80% of their normal pay.

More details on the wage subsidy extension can be found here: https://www.workandincome.govt.nz/covid-19/wage-subsidy-extension/index.html