Covid-19 – More Breaking news where the Subsidy exceeds normal pay

Saturday 28 March 2020

Today – Grant Robertson has just clarified the situation where a subsidy is greater than the employee’s normal pay

So, for all of you who have been asking this question in the last 24 hours:

  • I am decidedly relieved to say that he has just confirmed that where an employee is normally paid less than the amount of the subsidy, you pay them their normal wage. Grant Robertson said “if a person’s income is normally less than the subsidy they can be paid their normal salary”. (it is a relief to know that previous guidance was correct.
  • I do not know if it will need to be repaid – so hold onto the excess, until we have that answer.
  • He further stated “We urge employers to use normal hours in the period before COVID-19 to assess the amount to be paid”.  So, you can use the Average Weekly pay calculation or a shorter period if someone’s working arrangements have changed or there is a seasonal fluctuation.

The full text can be found here: https://www.beehive.govt.nz/release/clarification-modification-wage-subsidy-scheme

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