The Extension to the Wage Subsidy Extension. No that is not a typo.  On Monday Finance Minister Grant Robinson announced the Resurgence Wage Subsidy (RWS).  The RWS is a follow on from the Wage Subsidy and the Wage Subsidy Extension.

With Auckland being at level 3 and the rest of New Zealand at level 2, the further extension to the scheme is there to assist employers to meet wage and salary costs.

Who is entitled?

Employers have to have had, or expect to have, a revenue drop of at least 40% for a 14 day period between 12 August to 10 September, compared to a similar period last year. 

The rates

The subsidy rates are the same as for the previous iterations of the scheme, being:

  • $585.80 for people working 20 hours or more per week; and
  • $350.00 for people working less than 20 hours per week.

Important notes

By making the application you must retain the employees named in the application for the period of the RWS.

You must ‘try your hardest’ to pay staff at least 80% of their usual wages during the period of the subsidy. 

You cannot be receiving either the Wage Subsidy or the Wage Subsidy Extension for the same employee during the period of Resurgence Wage Subsidy.

Employers and the self-employed have till 3 September 2020 to apply for the RWS.

What to do if the RWS is not going to help

The reality is for many businesses unfortunately the RWS is too little too late and they are having to make some tough decisions regarding the future of their business.  If you fall within this category make sure you get advice early regarding your obligations to staff in redundancy and restructuring situations.  We are here to provide specific advice to you and your business

For more information

For tailored advice on your rights and obligations please contact our Wellington employment law experts on 04 472 0020. 

Resurgence Wage Subsidy - Employment Law