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:

Need help managing staff?

Mike has a wealth of experience advising on every aspect of the employer-employee relationship. I can give you per-phone guidance or work along side you to make things happen.

Keeping You Posted

11 April 2024

Essential Update - 11th April 2024

Read Now >
10 January 2024

Essential Update - First update of 2024

Read Now >
4 December 2023

Final 2023 Essential Update

Read Now >