Covid-19 Wage subsidy, and staff who normally earn less than $585.00 a week

May 7, 2020

in COVID-19,Employment

If you are managing your payroll during the COVID-19 crisis and you are using the Government wage subsidy, it would be unwise to take the “80%” figure as a target for all staff.

Your business will have its own specific circumstances, and amongst those it may have staff who for whatever reason are paid less than $585.00 a week.

The subsidy regime does not provide a basis for a business to put their entire staff on 80% regardless of their ordinary weekly pay.

Amongst other things, remember the regime requires you to pay your staff at least $585.00 a week (if their ordinary weekly pay is equal to or more than that).

If an employee’s ordinary weekly pay is less than $585.00, you cannot drop them to 80%. You must pay them their full ordinary weekly pay (you also do not have to pay them more than their ordinary weekly pay).

If you have any uncertainty around that, please feel free to get in touch for a discussion.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:

Wallace Revell
wrevell@farry.co.nz
09 353 6672

The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain. 

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