Who can get COVID-19 Resurgence Wage Subsidy

Find out who can apply and what criteria you need to meet to get the COVID-19 Resurgence Wage Subsidy.

Information

You can no longer apply for the Resurgence Wage Subsidy.

You can still apply for the Leave Support Scheme if you have staff who can’t work because of COVID-19.

You can't receive more than one COVID-19 payment from us for the same employee at the same time. This includes the:

You also can't receive the Resurgence Wage Subsidy more than once for an employee.

Who can apply

New Zealand employers who have had, or expect to have, a revenue drop of at least 40% because of COVID-19, for a 14 day period between 12 August to 10 September 2020, compared to a similar period in 2019, can get it.

The subsidy is so businesses can keep paying their employees and acknowledges the impact on businesses of the change in COVID-19 Alert Levels.

Criteria you need to meet:

  • You must be an eligible employer

    Employers who are significantly impacted by COVID-19 are eligible to apply.

    This includes:

    • registered charities
    • Non-Government Organisations (NGOs)
    • the self-employed and sole traders
      • if you're also an employee of a business, your employer can also apply for the Resurgence Wage Subsidy for you
    • contractors
    • incorporated societies, and
    • post-settlement governance entities
    • local government organisations
    • kindergartens and Early Childhood Centres.

    If you're an eligible employer, you can apply:

    • for casual employees if they're employed by you at the time you apply, and they would have expected to work during the time you will receive the Resurgence Wage Subsidy
    • if you're a shareholder in a business (ie, you work for the business and are paid a wage, salary or draw an income for the work you do)
    • if you're a partner in a business (ie, each partner is paid a wage, salary or draws an income for the work they do).

    You can't apply for an employee on ACC earnings related compensation. But you can apply for them if they've returned to work and no longer get ACC.

    State sector organisations

    State sector organisations are generally not eligible to receive the Resurgence Wage Subsidy. This includes:

    • government agencies, such as:
      • Ministry of Health
      • District Health Boards
      • Inland Revenue
      • Ministry of Social Development
    • Crown entities, such as:
      • Kāinga Ora
      • Accident Compensation Corporation (ACC)
    • schools
    • tertiary education institutions, such as:
      • universities
      • polytechnics
      • institutes of technology
      • Wānanga

    State sector organisations do not include:

    • local Government, such as:
      • Regional councils
      • City councils
      • District councils
    • kindergartens
    • Early Childhood Centres
    • Non-Government Organisations (NGOs).

    A state sector organisation, with its monitoring agency, can ask for an exception to become eligible to apply for the Resurgence Wage Subsidy. State sector organisations should contact their monitoring agency if they wish to discuss this. A State sector organisation that has already been granted an exception for a previous COVID-19 payment does not need to apply for an exception for the Resurgence Wage Subsidy.

    Businesses contracted to provide services to state sector employers

    These businesses (eg cleaning, security, etc) are not state sector employers. They can apply for the subsidy if they meet the other qualifications.

  • Your business must be in New Zealand

    Your business must be registered and operating in New Zealand.

    This means your business must be:

    • registered with the New Zealand Companies Office
    • physically located in New Zealand, and
    • your employees legally work in New Zealand.

    Sole traders

    Sole traders are not required to be registered with the New Zealand Companies Office, but must have:

    • a personal or business IRD number for paying income tax and GST
    • government licences and permits for their business needs, and
    • qualifications or registrations for their trade or profession.

    Sole traders must still meet the requirements to be physically located and legally working in New Zealand.

  • Your employees must be legally working in New Zealand

    Legally working in New Zealand means a person is both working in New Zealand and is legally entitled to work in New Zealand.

    A person is legally entitled to work in New Zealand if they:

    • are a New Zealand or Australian citizen (including a person born in the Cook Islands, Niue or Tokelau), or
    • have a New Zealand residence class visa (eg, permanent residence visa or returning resident visa), or
    • have a New Zealand work visa or a condition on their New Zealand temporary visa that allows them to work in New Zealand (eg, work visa or student visa that allows them to work).

    For more information, visit the Employment New Zealand website.

  • You must have a 40% decline in revenue over 2 weeks

    You must have had or expect to have a revenue drop of at least 40% for a 14 day period, between 12 August to 10 September 2020, compared to a similar period in 2019.

    The decline must also be related to COVID-19.

    Definition of revenue

    Revenue means the total amount of money a business has earned from its normal business activities, before expenses are deducted (this doesn't include the Wage Subsidy).

    If you are a pre-revenue research and development start-up business, you can include a drop in projected capital income when determining a 40% decrease in revenue.

    Comparing to a similar period in 2019

    Businesses must compare their revenue to a similar period in 2019. The revenue in the affected period must be at least 40% less than it was in the period it was compared against.

    Businesses operating for less than a year or have high growth

    New businesses which have been operating less than a year, or high growth businesses (e.g. that have had a significant increase in revenue), can apply for the Resurgence Wage Subsidy. The business must have been operating for 14 days or more.

    To determine whether these businesses meet the 40% decline in revenue assessment, they must compare their revenue against a 14 day period that gives the best estimation of the revenue decline related to COVID-19.

  • You must mitigate the financial impact

    Your business must have taken active steps to mitigate the financial impact of COVID-19.

    This could include:

    • drawing from your cash reserves (as appropriate)
    • activating your business continuity plan
    • making an insurance claim
    • proactively engaging with your bank
    • seeking advice and support from:
      • the Chamber of Commerce
      • a relevant industry association
      • the Regional Business Partner programme.
  • You must retain the employees you're applying for

    You must retain the employees named in your application for the period of the Resurgence Wage Subsidy.

    • Employers are required to agree that, for the duration of the Resurgence Wage Subsidy, they will retain the employees the subsidy was paid for.
    • If you are receiving the Resurgence Wage Subsidy, you must:
      • try your hardest to pay staff at least 80% of their usual wages;
        • if that isn't possible, pay at least the rate of the Resurgence Wage Subsidy
        • if the employee's usual wages are lower than the rate of the Resurgence Wage Subsidy, continue paying that amount for the duration of the subsidy.

    You cannot apply for the Resurgence Wage Subsidy for an employee if you've already given that employee a notice of redundancy, unless you withdraw the redundancy notice.

If you're already getting a COVID-19 payment

You can't get the Resurgence Wage Subsidy if you're already getting other COVID-19 payments like the Wage Subsidy, Wage Subsidy Extension or the Leave Support Scheme for an employee.

You also can't get the Resurgence Wage Subsidy for an employee if you'll still be getting a COVID-19 payment for them on 3 September 2020.