A significant expansion to the Governments Flexi-wage scheme will support employers to take on new workers, including those who lost their jobs due to COVID-19.

Did you know that New Zealand employers can apply for financial support to help take on new employees who may be finding it hard to get into the workforce?

This subsidy is called Flexi-wage. And yesterday the Government announced a $300 million boost in funding for this scheme to help keep New Zealand’s unemployment levels down.

From Monday 15 February, the Government will widen Flexi-wage to include applications for workers who aren’t on a benefit, support for those seeking self-employment, and fixed rates.

What is Flexi-wage?

Flexi-wage is a subsidy programme offered by Work and Income to help employers take on new employees who may be finding it hard to get into the job market. You can use the subsidy to contribute to training, in-work support, and wages for a new employee to ensure they’re able to do the work.

Flexi-wage expansion: what’s new?

As part of a $300 million boost in funding, this Flexi-wage program will widen to:

  • Include job seekers who aren’t on a benefit.
  • Introduce fixed rates and time frames at:
    • $276 per week (GST exclusive) for 24 or 36 weeks. The Flexi-wage contract duration will depend on how much support your worker needs to upskill and continue in the job.
    • $600 a week over 28 weeks for self-employed workers.

Who can apply for a Flexi-wage subsidy?

You can apply for Flexi-wage for an employee if:

  • The job you’re offering pays at least the minimum wage.
  • The job will continue after the subsidy has finished or is a community project that will get the employee into work once it’s finished.
  • You haven’t dismissed anyone else to make the position free for a Flexi-wage contract.
  • The employee is someone who:
    • is on a benefit, qualifies for a benefit, or has contacted Work and Income for job-seeking assistance; or
    • you want to hire or redeploy but who doesn’t have the required skills for the position.

How to apply:

If you’re an employer and want to find out more, you can apply through Work and Income. If you’re not already working with Work and Income for your recruitment needs, send your name, business name, business postcode, phone number and details about the roles you’re offering to flexiwage@msd.govt.nz.

If you have a current Flexi-wage contract it will not be affected by these changes.

Have a question about Flexi-wage or taking on new hires? Call the team at HR Assured for a chat.