As part of the recent Budget announcement, a Wage Subsidy Extension payment will be available to support employers who are still significantly impacted by COVID-19 after the Wage Subsidy ends.
The Wage Subsidy Extension will be available from 10 June 2020 until 1 September 2020. Eligible employers will need to reapply through Work and Income once their current 12-week subsidy has come to an end.
How much will I receive?
The weekly rates will be the same as under the current Wage Subsidy, and the Extension will provide an 8-week payment per named employee. It will be paid to the employer as a lump sum. The Wage Subsidy Extension must be used to pay employees’ wages and receiving it does not change existing employment law obligations.
Who is eligible?
The Wage Subsidy Extension will be open to the same types of employers currently eligible for the wage subsidy. For the Wage Subsidy Extension, an employer must have experienced a revenue loss of at least 50% for the 30 days before the employer applies for the extension, compared to the closest period last year. There are different calculations for organisations where this is not possible, such as new businesses or pre-revenue firms.
As always, if you are thinking of applying for this extension or have any queries on this please do not hesitate to contact us. We are here to help.