Resurgence Wage Subsidy and Leave Support Schemes
20 August 2020Resurgence Wage Subsidy
To be eligible for the Wage Subsidy Extension you have to show an actual 40% decline in revenue in a continuous 30 days period in the 40 days before the date you applied, compared with the same period last year. Applications opened on 10 June 2020 and close at 11:59pm on 1 September 2020. The payment covers a period of 8 weeks.
To be eligible for the Resurgence Wage Subsidy you have to show an actual 40% decline in revenue in a continuous 14 days period between 12 August to 10 September compared to a similar period last year. Applications can be made from 1pm on 21 August 2020 until 11.59pm on 3 September 2020. The payment covers a period of 2 weeks.
In either case, even though you have to ensure the loss in revenue occurred before you applied, the payment starts from the date you applied, rather than the start of the measurement period. This will cause some outcomes that people will feel are not equitable:
- If you applied for the Wage Subsidy Extension on 10 June, the 8 weeks period ended on 5 August. In that event you could be eligible for the Resurgence Wage Subsidy as applications open on 21 August.
- However, if you applied for the Wage Subsidy Extension on or after 10 July, the 8 weeks period would end on 4 September. In that event you would not be eligible for the Resurgence Wage Subsidy because applications close on 3 September.
- On the other hand, if to date you could not qualify for the Wage Subsidy Extension, you may be eligible for the Resurgence Wage Subsidy if you can show a revenue drop of at least 40% for a continuous 14 days period between 12 August to 10 September compared to a similar period last year.
Leave Support Scheme
Initially this payment was the ‘COVID-19 Essential Workers Leave Support Scheme’ because it was only available to essential businesses. It's now called the 'COVID-19 Leave Support Scheme' because it's available for all employers.
The latest change is that if you apply after 1pm on 21 August the revenue test (40% decline) will no longer apply.
To be eligible an employee must be prevented from coming into work because of Ministry of Health guidelines, and be unable to work from home. The employee must either:
- Have tested positive for COVID-19 and required to remain off work until they've been cleared by a health professional to be released from self-isolation, or
- Have come into contact with someone who has COVID-19 and must self-isolate for 14 days, or
- Be at higher risk if they get COVID-19, and Ministry of Health guidelines recommend they stay at home while public health restrictions are in place, or
- Have household members who are at higher risk if they get COVID-19 and the Ministry of Health recommends the employee also remains at home to reduce the risk to them.
The payment is not available to people who simply choose to remain at home.
The payment rate is the same as for the wage subsidy and is paid as a lump sum for 4 weeks from the date you submit your application. You can't apply for less than 4 weeks.