Government has announced a new wage subsidy, specifically for apprentices.

The “Apprenticeship Boost” wage subsidy scheme kicks off from 1st August this year, to help employers retain and employ new apprentices while dealing with the effects of COVID-19.

How it will work

The application process and online link is still being finalised, although we can tell you that:

  • Applications are open from 1 August 2020 to 1 April 2022.
  • The subsidy applies to first and second year apprentices, new and existing, who are in a Tertiary Education Commission approved New Zealand Apprenticeship or a Managed Apprenticeship.
  • The subsidy will be paid at $1,000 a month for apprentices in their first 12 months of training, and $500 a month for apprentices in their second 12 months of training.
  • The subsidy will be paid to the employer per eligible apprentice.
  • More information will be available in the coming weeks on eligibility and how to apply. It will most likely be accessed through the Ministry of Social Development.

Apprentice fees waived
Earlier this month the Government announced that apprentice education and training fees have been waived for the period 1 July 2020 until 31 December 2022 for eligible courses provided by Tertiary Education Organisations (TEOs).

Best practice guidelines

If you are looking to access this subsidy, it’s important your employment framework and documentation reflect the changes the subsidy brings.

  • Good documentation is key to meeting your obligations. This means consideration of:
    – pay rates
    – updates to employment & apprentice agreements
    – your apprenticeship support policy
  • Clearly communicate the changes with your employee.
  • Keep clear records of how the subsidy has been used.

More details about the subsidy are on the Ministry of Social Development website.

If you have any questions, give us a call (07 823 3250) or send us an email [email protected].