New Zealand Prime Minister, Jacinda Ardern alongside government ministers and public service chief executives, will take a pay cut for the next six months to deal with the impact of Covid-19 (Coronavirus) pandemic.
The members involved will receive a pay cut of 20% to acknowledge the number of employees in New Zealand who have struggled financially through losing their jobs during the pandemic outbreak.
Alongside these pay reductions, New Zealand government announced extra measure to provide relief packages for small and medium-sized businesses. This means that employers can be more flexible to meet tax deadlines, $25 million committed to consultancy support, £3.1bn tax loss carry-back scheme to improve cash flow, and changes to loss continuity rules, making it easier for firms to raise capital.
The government earlier this month additionally introduced a number of leave schemes, assisting those who need to take leave due to following the Coronavirus health guidance of self-isolating.
Jacinda Ardern, prime minister for New Zealand said: "While this won't overall shift the government fiscal position, it's about leadership, and I acknowledge my colleagues both in the executive but also the colleagues we work within the public service for the decision that was taken today."
"Many people in our public sector are essential employees, we are not suggesting pay cuts here and nor would New Zealanders find that appropriate. Rather, I am responsible for the executive branch, this is where we can take action, and that is why we have."
