06 May COVID-19 Wage Subsidy Scheme
Since the Covid-19 Level 4 Lockdown, many people have been taking part in the Government’s Wage Subsidy Scheme. This scheme is available for a 12-week period, and supports all businesses and their employees by ensuring employees receive income, even when they are unable to work during that period.
The scheme pays an employer $585.80 per week for full time employees (those employed for more than 20 hours per week), and $350.00 per week for part-time employees (employed for less than 20 hours per week).
While the employer receives the subsidy for each employee in a bulk sum for the 12-week period, the employer pays their employees in the usual pay cycle.
The expectation of the scheme is that each employee will receive the full allocation allowed. However, if an employee usually receives less than the allowance, that employee will receive only their usual amount. The leftover money will then be allocated to another employee who normally receives more than the scheme allows. For example, if an employee was on $20.00 an hour, worked 25 hours a week, and would normally receive $500.00 a week, they should continue to be paid that $500.00. The extra $85.80 should then go to another employee.
The Wage Subsidy Scheme is subject to normal deductions such as PAYE, ACC levies, KiwiSaver and student loan repayments.
If you are have any queries about the Wage Subsidy Scheme, please contact us for more information.