Wage subsidy and leave support are two of the most important benefits that New Zealand citizens can receive. Wage subsidy is a government-provided financial assistance to employers who hire workers who have been out of a job for a long time.
Leave support, on the other hand, is a government-provided monthly payment to employees who take parental leave or are isolated due to COVID. These benefits have been designed to help New Zealanders get back on their feet after a long period of unemployment.
When applying for these schemes, all employers must agree to conditions including those listed below.
- At a minimum, employers must pass on the full subsidy received for each named employee as wages. If a person’s normal wages or salary are less than the relevant subsidy rate, they can be paid their normal wages or salary.
- Employers cannot unlawfully require named employees to use their annual holidays or sick leave, leave without pay, or other leave entitlements.
- Receiving a wage subsidy does not change the terms and conditions in the employment agreement. Being asked to use leave entitlements or make any changes to the terms in your employment agreement cannot be done unless the changes have been discussed and agreed with you in good faith and are in writing.
Has it helped New Zealand in difficult times?
The New Zealand government has introduced the wage subsidy and leave support schemes in order to help New Zealanders who have lost their jobs due to the pandemic. These schemes have been designed to help New Zealanders get back on their feet after a long period of unemployment. The schemes have been successful in helping many New Zealanders find employment again.
Who is eligible?
- To be eligible for the wage subsidy, you must:
- Be a New Zealand citizen or resident, or have a valid work visa
- Be currently receiving unemployment benefits from WINZ
- Have been unemployed for at least four weeks
- Be available and able to start work within four weeks of being offered a job
- Be a New Zealand citizen or resident, or have a valid work visa
- Have been employed for at least six months prior to taking leave
- Be taking unpaid parental leave for at least four weeks
- Your employer must also be registered with the Inland Revenue Department.
How much is the subsidy?
The wage subsidy is a fixed payment of $600 per week for full time workers and 359 for part time workers. The leave support payment is a fixed payment of $300 per week.
How long does the subsidy last?
The wage subsidy is available for up to 12 weeks, while the leave support payment is available for up to 16 weeks.
What are the conditions?
All employers who receive the wage subsidy must agree to certain conditions, including passing on the full subsidy to employees as wages. Employers cannot require employees to use annual holidays or sick leave, leave without pay, or other leave entitlements. The wage subsidy does not change the terms and conditions in the employment agreement
Conclusion
Hope this article helped you understand wage subsidy and leave support in New Zealand. If you have any more questions, feel free to ask by booking a consultation
