New Zealand consults on income insurance scheme – Regulatory & Government – Insurance News

7 February 2022

New Zealand has started consultations on a proposed income insurance scheme that would support workers made redundant, laid off or forced to step aside because of a health condition or disability.

The scheme has been designed by the Government, Business New Zealand and the New Zealand Council of Trade Unions and would provide 80% of a persons usual salary for up to seven months, up to the current Accident Compensation Corporation (ACC) cap.

Finance Minister Grant Morrison says the scheme is an enduring solution to protect people and the economy after job losses.

As New Zealand moves beyond the economic and social impacts of COVID-19, there are important lessons to be learned from the way we were able to support one another through an unprecedented series of challenges, he said.

During covid, the Wage Subsidy Scheme and Resurgence Support Payment was primarily focused on keeping people in their existing jobs and supporting businesses most directly affected by the pandemic.

Our proposed scheme provides economic security to individuals directly, and supports them to transition into a good, new job, as opposed to economic support packages which keep people in their existing job even if that role is no longer viable, Mr Robertson said.

The scheme would be administered by ACC and would be funded by levies on wages and salaries, with both workers and employers paying an estimated 1.39% each.

The consultation closes on April 26.

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New Zealand consults on income insurance scheme - Regulatory & Government - Insurance News