With the 12 week wage subsidy coming to an end, some businesses will be looking to apply for the extension.
The wage subsidy extension will be available from 10 June 2020 until 1 September 2020. Applications open from 10 June, however businesses cannot apply for the extension until their 12 week wage subsidy has finished. The 12 week subsidy starts on the date you applied for it.
On the 5th of June the Government announced a change in criteria for the wage subsidy extension payment from a 50% revenue drop to a 40% revenue drop. This means you must have had a revenue loss of at least 40% for a continuous 30 day period. This period needs to be in the 40 days before you apply (but no earlier than 10 May 2020) and must be compared to the closest period last year.
We are awaiting confirmation from the Ministry of Social Development that if there has been significant growth in the business the 40% drop can be against projected revenue.
This extension will pay out the same as the present wage subsidy. Paying $585.80 a week for full-time workers (who worked 20 or more hours per week before COVID-19) and $350 a week for part-time workers (fewer than 20 hours). It will continue to be paid out in a lump sum covering the 8 weeks, meaning a $4,684.00 payment per full time worker.
Should you need any help with the above applications or have any queries regarding this, please do get in touch, we are here to help.
Stay safe out there, we look forward to seeing you all again soon.