7.3 Support for businesses to retain workers

Covid by the Numbers Report

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7.3. Support for businesses to retain workers | Te tautoko mō ngā pakihi kia mau tonu ai ngā kaimahi

The Wage Subsidy Scheme supported people to remain connected to their jobs during the pandemic and helped mitigate potential layoffs or reductions in hours. Wage subsidies were available between March 2020 and December 2021. $18.0 billion was paid across 1.76 million unique jobs in 2020, and 1.36 million unique jobs in 2021.

7.3.1. Wage Subsidy Scheme timeline | Te rārangi wā o te Kaupapa Utu Moni Āwhina

The Wage Subsidy Scheme operated during lockdowns. It was delivered in a series of tranches. Eligibility conditions and subsidy amounts varied across those tranches.

In 2020:⁴²

The Wage Subsidy Scheme opened on 17 March 2020 for applications from employers, including self-employed people, across New Zealand who experienced at least a 30% decline in revenue over a month related to COVID-19. It provided eligible employers a lump-sum payment for each employee, to help pay and retain employees for a 12-week period. It closed on 9 June 2020.
The Wage Subsidy Extension opened on 10 June 2020 for applications from employers, including self-employed people, across New Zealand who experienced at least a 40% decline in revenue over a month related to COVID-19. It provided eligible employers a lump-sum payment for each employee, to help pay and retain employees for an eight-week period. It closed on 1 September 2020.
The Resurgence Wage Subsidy opened on 21 August 2020 for applications from employers, including self-employed people, across New Zealand who experienced at least a 40% decline in revenue over two-weeks related to COVID-19. It provided eligible employers a lump-sum payment for each employee, to help pay and retain employees for a 2-week period. It closed on 3 September 2020.

In 2021:

The Wage Subsidy March 2021 opened on 4 March 2021 for applications from employers, including self-employed people, across New Zealand who experienced at least a 40% decline in revenue over two weeks related to the rise to Alert Level 3 on 28 February 2021. It provided eligible employers a lump-sum payment for each employee, to help pay and retain employees or a 2-week period. It closed on 21 March 2021.
The Wage Subsidy August 2021 #1 opened on 20 August 2021 for applications from employers, including self-employed people, across New Zealand who experienced at least a 40% decline in revenue over two weeks related to the effects of Alert Level 4 or 3. It provided eligible employers a lump-sum payment for each employee, to help pay and retain employees for a 2-week period. It closed on 3 September 2021.
Seven further fortnightly wage subsidies followed, starting with Wage Subsidy August 2021 #2 (open 3 September 2021 to 16 September 2021) and ending with Wage Subsidy August 2021 #8 (open 26 November 2021 to 9 December 2021)

7.3.2. Wage Subsidy Scheme uptake | Te whiwhinga o te Kaupapa Utu Moni Āwhina

Uptake of the Wage Subsidy Scheme was highest in the construction and accommodation and food services sectors, and lowest in sectors dominated by the public sector (for example, public administration and safety, education and training, health care and social assistance) (Figure 106).

Figure 106: Jobs supported by wage subsidies in New Zealand, by industry

Proportion of unique jobs supported by at least one wage subsidy, by industry, in 2020 and 2021

Source: Ministry of Social Development, Who received the 2021 COVID-19 wage subsidies? – May 2022, https://www.msd.govt.nz/about-msd-and-our-work/publications-resources/statistics/covid-19/who-received-the-covid-19-wage-subsidies-may-2022.html
Notes: In some cases, the calculated proportion of unique jobs supported by the Wage Subsidy Scheme can exceed 100%. Some employees paid a wage subsidy are not included in Inland Revenue data. For example, some business owners could apply as employees.

Figure 107: Jobs supported by wage subsidies in New Zealand, by region

Percentage and number of unique jobs supported by at least one wage subsidy, in 2020 and 2021

⁴² Ministry of Social Development, 'Who received the 2021 COVID-19 wage subsidies?' May 2022, https://www.msd.govt.nz/about-msd-and-our-work/publications-resources/statistics/covid-19/who-received-the-covid-19-wage-subsidies-may-2022.html