The JobKeeper Scheme will ensure that eligible employees receive a gross payment (i.e., before tax) of at least $1,500 per fortnight for the duration of the scheme. Employers are able to pay eligible employees more than this amount, based on the employees’ usual pay arrangements.

PRACTICAL TIP – Satisfying the ‘wage condition’

On this basis, the JobKeeper Payment scheme requires employers to pay their eligible employees a minimum of $1,500 (before tax) in respect of each fortnight covered by the scheme. The first fortnight under the scheme commenced on Monday 30 March 2020 and ended on Sunday 12 April 2020, with the final fortnight starting on Monday 14 September 2020 and ending on Sunday 27 September 2020. Where an employer pays their staff monthly, the monthly payment must be equivalent to the fortnightly amount of $1,500 per fortnight.

The minimum $1,500 (before tax) payment requirement will operate as follows:

• If an employee has been receiving at least $1,500 in gross salary income per fortnight since 30 March 2020, they will continue to receive their regular income according to their prevailing workplace arrangements. In this case, the JobKeeper Payment will effectively subsidise the first $1,500 of the employee’s gross fortnightly salary
• If an employee has been receiving less than $1,500 in gross salary income per fortnight since 30 March 2020, the employer must pay the employee a ‘top-up’ payment to ensure the employee has been paid at least $1,500 per fortnight to be eligible to receive the JobKeeper Payment. This means some employees will receive more than their ordinary salary and wages derived from the

• If an employee has been stood down without pay after 1 March 2020 their employer must pay the employee a minimum gross fortnightly salary income of $1,500 from 30 March 2020, to be eligible to receive the JobKeeper Payment in respect of the
• If an employee was employed on 1 March 2020, has subsequently ceased employment with their employer, and then has been re-engaged by the same employer, the employer must pay the employee a minimum gross fortnightly salary of $1,500 under the JobKeeper

Note: the minimum payment must be made by the last day of the fortnight. However, the ATO has already exercised its discretion to allow employers to make the minimum payment for the first two fortnights by the end of April 2020. Going forward, the minimum payment will need to be strictly made by the end of the relevant fortnight.

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