Earthquake Support Subsidy
Provides financial support to employers who want to maintain the employer/employee relationship and needs to take time to consider the business viability
What is it
Earthquake Support Subsidy is a payment for employers to assist them to pay their employees while they deal with the impact of the aftershock. The subsidy is also available to the self employed or business owners who draw a wage.
The payment will be made directly to the employer who will then pay the employee. The wage subsidy will be paid:
- for up to six weeks from 22 February 2011
- at a rate of $500 per week per fulltime employee (over 20 hours per week) or a rate of $300 per week per employee for part time employees (anyone working 20 hours a week or less)
- the subsidy is not subject to GST but is subject to PAYE.
Who can get it
The payment assists employers when they are unable to operate either due to damage, a cordon, or an essential service is not available, or a small business where they can operate but are experiencing significant loss of trade. For example, business premises are destroyed or severely damaged, or the premises may be intact but staff or the public cannot access the premises because of cordons or there is liquefaction around the property.
You will need to be:
- a New Zealand owned business
- a Christchurch City Council area based employer
- self employed, sole trader, or contractor
- unable to access the workplace due to damage, a cordon, or an essential service is not available, or a small business who can open but are experiencing significant loss of trade.
Employers who have business interruption insurance should contact their insurance company in the first instance. If insurance payments will be delayed, employers can access the Earthquake Support Subsidy to cover the intervening period, but will be required to repay it when the insurance payment is received.
You are not able to qualify if you are:
- an employer who can continue to operate and/or meet your obligations to pay your employees
- a government or government-related organisation
If you have staff who have been injured or bereaved and who are receiving weekly compensation from ACC you are not able to get an Earthquake Support Subsidy for that staff member.
What constitutes the Christchurch City employer based area in terms of these payments?
It covers the Christchurch City Council area which is made up of the community board areas of:
- Akaroa-Wairewa
- Burwood-Pegasus
- Fendalton-Waimairi
- Hagley-Ferrymead
- Lyttelton-Mt Herbert
- Riccarton-Wigram
- Spreydon-Heathcote
- Shirley-Papanui.
- If you don't have access to a computer, ask friends, neighbours or family. As an alternative you can use a computer set up for this purpose at Work and Income service centres.
- You can also apply by phoning the Earthquake Government Helpline on 0800 779 997.
If you employ more than 50 people
Call the Earthquake Government Helpline on 0800 779 997. We are also proactively contacting employers in the Christchurch City Council who employ more than 50 people.
When will it be paid?
Payments will be made once your IRD details have been verified.
Payments
The first Earthquake Support Subsidy payment (representing a three week period) has already been made.
If your circumstances haven’t changed:
- the second Earthquake Support Subsidy payment will be paid by Friday 18 March 2011
- this payment covers a further three weeks subsidy.
If your circumstances have changed you need to call the Earthquake Government Helpline on 0800 779 997 to tell us.
Employers can still apply to receive the earthquake support subsidy.
What information do you need to include?
You will need to provide your:
- business IRD number
- your business bank account number
- details of the staff you want the subsidy for (employee names, date of birth and IRD number). This information will be confirmed by IRD before payment is made
- an email address / mobile phone number
If you don't have a personal email or mobile phone, you can provide contact details of a friend or family member who we can contact on your behalf. This person will receive acknowledgement of your application and your payment schedule.
You will need to make sure you have contacted your employees and made them aware of what is happening to avoid your employees applying for the Earthquake Job Loss Cover. Where your employees have been unable to contact you and may have applied before you, for Earthquake Job Loss Cover you will not be able to receive the your Earthquake Support Subsidy payment for that employee. It’s really important to your employees to avoid this situation.
