This week the Government, Business New Zealand and the New Zealand Council of Trade Unions announced their proposal to introduce a New Zealand Income Insurance Scheme, designed to give financial support to Kiwis who lose their job through no fault of their own.
Under the proposed scheme, people who have lost their jobs through no fault of their own will have the time and financial security to find a good job that matches their skills, needs and aspirations, or retrain or take part in rehabilitation for a new career.
The proposed scheme has been designed to help support labour market productivity by playing a key role in better protecting workers and incomes, matching skills with businesses that need them, and helping to support communities and industries to transition through economic changes.
The key features of the proposed New Zealand Income Insurance Scheme are:
- Broad coverage for different working arrangements
- Coverage for job losses due to redundancy, layoffs and health conditions and disabilities
- A 4-week notice period and 4-week payment, at 80% of salary, from employers
- A further 6 months of financial support from the scheme, at 80% of wages or a salary
- Option to extend support for up to 12 months for training and rehabilitation
- A case management service to support people’s return to work
- Administered by ACC
- Funded by levies on wages and salaries, with both workers and employers paying an estimated 1.39% each
- Workers eligible after 6 months of levy contributions in the previous 18 months.
More details can be found at the New Zealand Income Insurance Scheme webpage: mbie.govt.nz.
This proposal would be a very significant change for New Zealand, but one that brings great benefit. Have your say in the 15-minute survey, or make a formal submission here. Submissions are due to close on 26 April 2022.