Covid 19 – Paying your Staff, Kiwisaver, Casual Holiday Pay

Paying your staff

If you are receiving the COVID-19 Wage Subsidy, you must try your hardest to pay the employee named in your application, at least 80% of their usual wages. If that isn’t possible, you need to pay at least the subsidy rate (ie, full-time or part-time).

If your employee’s usual wages are less than the subsidy, you must pay them their usual wages. Any difference should be used for the wages of other affected staff – the wage subsidy is designed to keep your employees connected to you.

The subsidy has been provided to Employers to help pay their staff and in all cases, ALL Employment Law conditions are still in force, for example:

  • Like an Employee’s normal wages, everything they receive is Taxable in the hands of the Employee with all standard deductions taken into account (PAYE, Student Loans, Kiwisaver etc).
  • The employer’s Kiwisaver is payable as usual.
  • If a Casual Employee who has been receiving holiday pay each pay, then this is paid on top of any payment, as currently happens.
  • The subsidy amount is taken into account as part of future Leave values.

Visit the Employment NZ website for information about employment law.

Employment New Zealand

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