The main points of the income insurance scheme are:
- To cover redundancy, layoffs, health conditions and disabilities
- employers will pay four weeks salary at the rate of 80 percent
- scheme will pay six months at 80 percent
- option to extend support for up to 12 months for training and rehabilitation
- case management service to help find a new job
- just like ACC
- tax at 1.39 percent of the employee gross salary, which is payable by both the employee and the employer
- employees will qualify if they have contributed to the levy for six months in the previous 18 months.
We don’t know whether the scheme is going to apply to shareholder employees who are paid a shareholder salary and not a PAYE salary.