You may be eligible for a Wage Subsidy
1 April 2020
As the COVID-19 pandemic deepens its hold across the country, governments and industry leaders are stepping up to help those impacted. To help you make sense of the barrage of information out there, we’ve put together a summary of helpful resources.
There is news further news on additional business support or stimulus packages, but some finer details have been announced.
If you haven’t already, you may be able to apply for a wage subsidy. The wage subsidy supports employers adversely affected by COVID-19 so they can keep paying their staff. It also helps workers continue to receive their income, even if they can’t work. Here is the criteria:
- You must be able to show a decline in revenue of at least 30%. For businesses over a year old, this is measured by comparison to the same period last year.
- The revenue decline must be due to the virus and no other reason
- Staff that you apply for the subsidy need to be retained and be paid a minimum of 80% of their normal wage/salary
- This subsidy is available to employers. It is also available to self-employed people and shareholder-employees.
- Employers receiving the wage subsidy must make every effort to pay employees at least 80% of their wages, and if they cannot do this, they must pass on the full wage subsidy to employees
- Employers cannot terminate an employee while receiving the wage subsidy
- Names will be published of all employers receiving the Wage Subsidy
- All legal obligations apply including paying staff for hours worked if over and above 80% of their wages/salary,
- Even if your business is not operating currently, you may be still eligible for the Wage Subsidy
- Payments will be paid as a lump sum and covers 12 weeks per employee. Employers can pass that on through usual pay cycles or at other intervals.
Minimum wage increase on 1 April – this has NOT been put on hold
Please remember there is a minimum wage increase from 1 April 2020. This is increasing by $1.20 which will take it to $18.90 per hour. Details can be found here.
Please get in touch with us if you have a question.