Following a “second wave” of COVID-19 community transmission, Alert Level 3 restrictions were put in place for Auckland and Alert Level 2 restrictions to the rest of New Zealand until at least 30 August.

The Government has also announced the Resurgence Wage Subsidy scheme designed to support businesses during this time.

The Resurgence Wage Subsidy is a new scheme in addition to the existing Wage Subsidy Extension scheme.  Applications for the Resurgence Wage Subsidy can be made until 3 September 2020.  It is available to eligible employers nationwide.

There are several criteria employers must meet to be eligible for the Resurgence Wage Subsidy.  The requirements include:

• The business must be registered and operating in New Zealand.

• The employees named in the application for the Resurgence Wage Subsidy must be legally working in New Zealand.

• The employer must have had or expect to have a revenue decline of at least 40% for a 14 day period between 12 August to 10 September compared to the closest period from last year.  That decline must be related to COVID-19.

• The employer must have taken steps to mitigate the financial impact of COVID-19.

• The employer must retain the employees named in the application for the period of the Resurgence Wage Subsidy.

Under the scheme, employers will receive a 2 week payment from the application date.  The payment rates are the same flat rates as those under the current Wage Subsidy Extension, which are:

• $585.80 per week for employees working 20 hours or more per week

• $350.00 per week for employees working fewer than 20 hours per week

Employers cannot receive the Resurgence Wage Subsidy if they are already getting the Wage Subsidy, Wage Subsidy Extension or the Leave Support Scheme for an employee.

Alternatively, employers can still make an application under the Wage Subsidy Extension scheme which will continue until 1 September.