Under NZII, if someone experiences (“no-fault”) redundancy or they can no longer do their paid job/s due to poor health and/or disability, they will be entitled to receive 80% of their prior wages/salary for a maximum of six months.
NZII does not include people for whom work is inappropriate or impossible, for example due to caregiving responsibilities (whether for children or others), or due to chronic disability (over six months). It does not cover new parents, nor those who find themselves parenting alone when they’ve left an abusive or otherwise toxic relationship to keep themselves and their children safe and/or well.
Employers and paid workers will each pay a flat rate 1.39% of salary/wages to cover the estimated annual $3.5 billion cost. That’s around $11 for someone on a minimum wage.
For more details see MBIE’s discussion document.
“…we do not recommend changing our social welfare system to a social insurance model…”Welfare Expert Advisory Group, Whakamana Tāngata