COVID-19 Resurgence Wage Subsidy payment details released
August 17, 2020 | 2 min read
The Government has released the details of the highly anticipated COVID-19 Resurgence Wage Subsidy payment. Applications for the payment open 21 August 2020.
The payment amounts to $585.80 per fulltime employee (those who work 20 hours or more) and $350 for each part time employee (those who work less than 20 hours per week). It is paid as a lump sum for two weeks per employee.
Key features of the Scheme
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Comparing to the closest period last year
Businesses must compare their revenue to the closest period last year. The revenue in the affected period must be at least 40% less than it was in the period it was compared against.
Businesses operating for less than a year or which have high growth
New businesses which have been operating less than a year, or high growth businesses (eg that have had a significant increase in revenue), can apply for the Resurgence Wage Subsidy.
To determine whether these businesses meet the 40% decline in revenue assessment, they must compare their revenue against a 14 day period that gives the best estimation of the revenue decline related to Covid-19.
You must retain the employees named in your application for the period of the Resurgence Wage Subsidy
Employers are required to agree that, for the duration of the Resurgence Wage Subsidy, they will retain the employees the subsidy was paid for. If you are receiving the Resurgence Wage Subsidy, you must:
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try your hardest to pay staff at least 80% of their usual wages;
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if that isn't possible, pay at least the rate of the Resurgence Wage Subsidy; and
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if the employee's usual wages are lower than the rate of the Resurgence Wage Subsidy, continue paying that amount for the duration of the subsidy.
Note: Employers can't receive the Resurgence Wage Subsidy if they are already getting other Covid-19 payments like the Wage Subsidy, Wage Subsidy Extension or the Leave Support Scheme for an employee.
Get in touch
Please get in touch with any of our contacts (pictured right) for further details.
Click here to visit Back to Business - our Covid-19 recovery resource for the New Zealand business sector.
To receive all updates on Covid-19 you can click here and fill out the Register for Updates form.
Contributors abe.trask-coombs@simpsongrierson.com