How to Apply for the Wage Subsidy or Leave Payment
Wage subsidy and leave payment self-employed application form
Wage subsidy and leave payment employer application form
Wage Subsidy
Who can get it
If you're an employer, contractor, sole trader or self-employed, you may qualify to get the COVID-19 wage subsidy.
To qualify:
- your business must be registered and operating in New Zealand
- your employees must be legally working in New Zealand
- the business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month when compared with the same month last year, and that decline is related to COVID-19
- your business must have taken active steps to mitigate the impact of COVID-19
- you must make best efforts to retain employees and pay them a minimum of 80% of their normal income for the subsidised period.
For definitions of these qualifications, see the information under the 'Definitions for Wage Subsidy qualifications' heading on the page below.
How much you can get
The COVID-19 Wage Subsidy will be paid at a flat rate of:
- $585.80 for people working 20 hours or more per week
- $350.00 for people working less than 20 hours per week.
The subsidy is paid as a lump sum and covers 12 weeks per employee.
This subsidy is for wages only. It is to help you keep your staff employed while you consider changes that may be needed while the disruption continues, and to ensure the future viability of your business.
Businesses can only get this subsidy once.
Leave Payment
Who can get it
If you're an employer, contractor, sole trader or self-employed, you may qualify to get the COVID-19 Leave Payment.
COVID-19 Leave Payment covers full-time, part-time and casual employees, and contractors who are legally working in New Zealand and who:
- need to self isolate in line with Ministry of Health Guidelines and have registered as needing to self-isolate with Healthline, cannot work from home and their self-isolation is not because they left NZ since the travel restrictions on 16 March 2020 and have since returned or
- cannot work because the person has been diagnosed with COVID-19 or
- cannot work because they are caring for dependents who are required to self-isolate or who are sick with COVID-19
How much you can get
The COVID-19 leave payment will be paid at a flat rate of:
- $585.80 to a person working 20 hours or more per week
- $350.00 to a person working less than 20 hours per week.
Employers receiving the payment for employees who are required to self-isolate can receive it for 14 days. As people may be required to self-isolate more than once, employers will be able to apply for this on an ‘as needed’ basis. It can be paid for the entire period an employee is sick (or looking after a dependent person who is sick) with COVID-19 but the employer must apply every 14 days.
Using paid leave entitlements or COVID-19 Leave Payment when self-isolating?
You and your employee can agree to use any form of paid leave (eg annual leave) to cover their period of self-isolation.
However, employees aren’t required to have used any or all their paid leave entitlements before they can receive this payment.
Eligible employers and employees
When applying for the Leave Payment the employer will consider whether:
- the employee was legally working for their employer at the time they decide to self-isolate; and
- they were expected to work for the period of self-isolation.
Self-employed people who are legally working in New Zealand are eligible for the payment if they:
- are usually earning the minimum wage when they decide to self-isolate; and
- were expecting to work for the period of self-isolation; and
- cannot draw an income for the period of self-isolation.
Some people aren’t eligible for the payment, including:
- self-employed people not earning at least the minimum wage
- people not legally working in New Zealand
Definitions for Wage Subsidy qualifications
Sole traders
Sole traders are not required to be registered with the New Zealand Companies Office, but must have:
- a personal IRD number for paying income tax and GST, and
- 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.
For more information on the above, visit the Work and Income Covid-19 Employer Support Page
