What are the payment rates for the Wage Subsidy Scheme?
– $600 (gross) per week for people working 20 hours or more per week (full-time rate)
– $359 (gross) per week for people working fewer than 20 hours per week (part-time rate)
The Wage Subsidy will be paid as a two-week lump sum.
NOTE: You can also apply for the subsidy for any casual employees who were employed by you at the time you apply, and would have expected to work during the time you will receive the Wage Subsidy Scheme.
Please visit Work and Income for information on eligibility criteria and how to apply.
Why is the COVID-19 Leave Hours option not showing up in the drop down menu?
To activate this special leave type, you need to go to Employee Details, select the correct employee and then click on Employee Payments. Scroll down and open Special Leave and Allowances, and make sure COVID-19 Leave Hours and COVID-19 Leave Payment are both ticked, then click Save. Now return to the Run a Pay section, and it should be available.
Who can get the Wage Subsidy?
To qualify:
– your business must be registered and operating in New Zealand
– your employees must be legally working in New Zealand
– the business must have experienced a revenue drop of at least 40% because of COVID-19 alert level changes.
NOTE: The Wage Subsidy Scheme is available nationally when there’s a regional or national move to Alert Levels 3 and 4 for a period of seven days or more.
For more information, please check out Work and Income’s COVID-19 page.
If my employee is off work to get a COVID test, should I use their sick leave or The Short-Term Absence Payment to pay them?
The Short-Term Absence Payment should be used to cover the cost of workers who:
– are entitled to paid sick leave; or
– aren’t eligible for sick leave or have used up their paid sick leave.
If your employee has sick leave available and you are receiving the Short-Term Absence Payment, you should use this to pay their entitlement while they are waiting for a test result. If you unsure about how to approach your situation, we recommend getting in touch with Work and Income.
Who can get the COVID-19 Short-Term Absence Payment?
The COVID-19 Short-Term Absence Payment is available for businesses (including self-employed) to help pay their people while they wait for a COVID-19 test result. It’s to help businesses keep paying eligible workers:
– who cannot work from home, and
– need to miss work to stay home while waiting for a COVID-19 test result (in line with public health guidance).
What are my obligations when I receive the Short-Term Absence Payment?
Normal employment law applies to all employment relationships – regardless of the circumstances that we find ourselves in. This includes anything that has been agreed to in an employment agreement. For more information about your obligations, head to Employment NZ.
What are my obligations as an employer when applying for the COVID-19 Leave Support Scheme?
Before applying for this scheme, you must have discussed the application with the affected employee, obtained their consent, and agree they fall into one of the eligible groups. You should also have explored other ways to support them (e.g. paid leave options such as existing sick or annual leave entitlements). Regardless of whether you applied for the previous Essential Workers Leave Support or the renamed Leave Support Scheme, the way you pay your employees has not changed:
– You must try your hardest to pay the employee named in your application at least 80% of their usual wages or salary; or
– If that isn’t possible, you must pay at least the rate of the Leave Support Scheme (unless the employee’s usual wages or salary is lower, in which case to continue paying their usual wages or salary).
Note: Neither you or your employee need to provide medical verification to the Ministry of Social Development. When you apply, you will need to confirm that you have read, understood and agree to a declaration, including declaring you’ve confirmed with your employee that they meet Ministry of Health guidelines. You can find a complete overview of your employer obligations and a copy of the relevant declaration here.
Am I required to track my employees’ hours if they are working from home?
As your employees are still working their normal hours and being paid accordingly, there is no requirement to track this information separately in any way. Just record their hours the same as if they were at work.
What if my employee worked some hours, but not as much as their standard weekly hours
Refer to Scenarios 2 and 8 in The Wage Subsidy Guide.
My employee normally receives less than the wage subsidy amount each pay. Do I need to pay them all of it anyway?
If your employee’s usual wages are less than the subsidy, you must pay them 100% of their usual wages. Any difference should be used for the wages of other affected staff.
I have employees that work variable hours. How do I work out whether they qualify for the full-time or part-time rate?
If your employee works variable hours, you can use an average to work out what rate to apply for. Use the average hours worked each week (use the average hours report to help you with this):
– over the last 52 weeks, or
– over the period of time you (or they) have been employed (if it’s less than 12 months).
If the average hours are:
– 20 or more, apply for the full-time rate
– less than 20, apply for the part-time rate.
Do I have to pass on the Wage Subsidy to my employees?
Yes, you are required to pass on the Wage Subsidy to your employees. And if you can, it is expected that you top this up to 80% of your employee’s standard wages/salary.
How much can I get for the Short-Term Absence Payment?
If your application is approved you can receive a one-off amount of $359 for each eligible worker. This is regardless of whether they’re working full or part-time.
When will I receive the payment for the Short-Term Absence Payment?
Work and Income are working hard to process and make payments as soon as possible. Once your application is approved, you’ll receive a confirmation email.
How can I apply for the Short-Term Absence Payment?
Businesses (including self-employed) can apply for the Short-Term Absence Payment on the Work and Income website.
Does the employee continue to accrue annual leave while they receive the COVID-19 subsidies?
Short answer, yes they do. One of the obligations Work and Income states for receiving the Wage Subsidy (or other COVID-19 subsidies) is that you will not make any changes to your obligations under any employment agreement, including to rates of pay, hours of work and leave entitlement, without the written agreement of the relevant employee. No changes to leave entitlement should be made while receiving the subsidy. If we consider that annual leave accrual is the periodical accrual of annual leave which contributes to the employee’s annual leave entitlement, then we must continue to accrue annual leave for the hours that the employee was expected to work during the time they are receiving the subsidy. Anything less would indicate that the employer is not giving the employee their full leave entitlement.
Can an employee use their other leave entitlements during the lockdown period?
Employers and employees can agree to use any form of paid leave (e.g. annual leave) to cover their period of self-isolation. However, employees aren’t required to have used any or all their paid leave entitlements before they can receive the Wage Subsidy support paid to an Employer. Refer to Scenarios 3 and 7 in the Wage
Subsidy Guide.
