Wage Subsidy Scheme (WSS)
WAGE SUBSIDY SCHEME (WSS)
The wage subsidy has been designed to provide income support to employees, to stabilise employment and to alleviate businesses cash flow issues.
Under this proposed scheme, the Government will pay eligible businesses 50% of the monthly wages of each VNPF-registered employee, up to VT 15,000.
Payments will be made based on actual VNPF contributions each month.
For the purposes of this scheme, eligible businesses are defined as businesses:
- That have a valid business license for 2021, and
- That were registered for VAT and submitted returns in 2019 and 2020, and
- Are identified as ‘distressed’ by MFEM, based on a stress test indicating that turnover has decreased by more than 30% due to COVID-19
- Are registered with VNPF and have been contributing to their employee’s VNPF
Businesses will be identified as distressed based on a test that shows a reduction in turnover as declared in VAT returns. The amount of the fall in turnover that is required to meet the test will be equal to or greater than 30% (when comparing either turnover experienced in December 2020 against turnover experienced in December 2019, or turnover experienced in the 4th quarter of 2020 against turnover experienced in the 4th quarter of 2019).
To calculate this, we take the 2019 value, minus the 2020 value, and divide this number by the 2019 value. If the result is equal to or greater than 0.3 (or 30%) then the business will be eligible for the Wage Subsidy Scheme.
Eligible businesses must continue to pay their employees their total correct wage and VNPF contributions as normal, and then the Government will check VNPF submissions and reimburse the business afterwards for 50% of the wage up to a total of VT 15,000. There will not be any need to submit receipts from VNPF.
GUIDELINES FOR COMPLETION OF THE FORM
2021 WAGE SUBSIDY SCHEME APPLICATION FORM Instructions
Please read the following instructions carefully before downloading or filling the application form.
- Under Section A, please provide your Government Vendor code if you already have one.
- In Section A, please provide your TIN/CT number.
- Please nominate a primary and an alternative contact person from within your organisation and provide their details in Sections B2 and B3 respectively.
- In Section C, please provide the details of only one business bank account for payments. No payment will be made to any personal bank account, through cash or cheque. If your business only uses a personal account to transact, please open a business bank account and provide the details on this form where asked.
All sections of this form are compulsory and must be fully completed with true and correct information.
- Please fill in the requested information into the designated cells only. Do not enter data into any other cells.
- You can submit your application in one of the following ways:
Ii. In person at the office of your representative, e.g. VCCI
Iii. As a paper copy given to MFEM Provincial Office, Provincial Government or Area Administrator.
- Please direct any queries you may have to:
Department of Finance & Treasury
Vanuatu Chamber of Commerce & Industry
ELIGIBILITY CRITERIA (Wage Subsidy Scheme)
Businesses that are eligible for the Wage Subsidy Scheme are those that:
1. Have a valid license (and provide a true copy of this license) issued by a licensing authority as per the Business License Act No. 19 of 1998 for 2021.
2. Are registered with VNPF and have been contributing to their employee’s VNPF.
3. Were registered for VAT and submitted returns in 2019 and 2020.
4. Are identified as ‘distressed’ based on a stress test indicating a reduction in turnover (according to VAT submissions) equal to or greater than 30% when comparing:
a) December 2020 and December 2019, or
b) the fourth quarter of 2020 and the fourth quarter of 2019.
5. Do not benefit from the SBG scheme (businesses that are eligible for both schemes may choose which scheme to apply for).
Application process for Wage Subsidy Scheme
The Ministry of Finance and Economic Management has already compiled a list of firms that meet the stress test and are eligible for help under this scheme.
A list of business licence numbers of the 422 eligible firms will be provided to the Vanuatu Chamber of Commerce and Industry and available on the DoFT website.
To maintain confidentiality only Tax Identification Number (TIN) (and not names) of eligible businesses will be provided to VCCI and listed on DOFT Website accessible here.
Please download an application form in the format of an Excel spreadsheet here (to do this you need to have access to a computer with the Microsoft Excel application)
Fill in the Excel spreadsheet and make a copy of your business licence and your VNPF Employer Certificate.
They will advise you of the process of submitting without Microsoft Excel.
Download application form here.