A Wage Subsidy Extension payment will be available to support employers, including sole traders, who are still significantly impacted by COVID-19 after the Wage Subsidy ends.
The Wage Subsidy Extension will be available from 10 June 2020 until 1 September 2020 so employers can keep paying their employees. You can’t apply for the Wage Subsidy Extension for an employee until their 12 week Wage Subsidy has finished.
Applications open from 10 June 2020.
Here are the key points you need to know:
- You must have had, or expect to have, a revenue loss of at least 50% for the 30 days before you apply, compared to the closest period last year.
- It will cover 8 weeks per employee from the date you submit your application.
- It will be paid to you as a lump sum at the same weekly rate as the Wage Subsidy.
- You’ll need to agree to certain obligations, such as to:
- pass the subsidy on to your employees
- retain your employees for the duration of the subsidy
- do your best to pay your employees at least 80% of their normal pay
- take active steps to mitigate the impact of COVID-19 on your business.