Last week MBIE released a discussion document proposing a new way of better protecting workers and the economy: a New Zealand income insurance scheme.
NZ is one of only a few countries in the developed world that does not have some form of mandatory nationwide income insurance scheme or other protection, for people who lose their jobs.
The scheme – on which input from all New Zealanders is being sought – proposes that :
“… workers receive 80 percent of their usual salary for up to seven months. It will cover them if they are made redundant, laid off, or when a health condition or disability means they have to significantly reduce their work hours or stop working entirely. This will give them the time and financial security to find a good job or take part in training or rehabilitation.
The scheme will require people to look for work or take part in training and rehabilitation. It will be funded by levies on wages and salaries, with both workers and employers paying an estimated 1.39 percent each. ACC will manage the scheme.”
You can download the report here
A summary document and submission template can be found here
Submissions close 26 April 2022, 5pm