The nine-day working fortnight will now be available to tens of thousands more workers as the government expands the scheme to include medium sized businesses.
The Prime Minister, John Key, says it's a bid to save jobs in the backdrop of tough economic times.
Around 2000 companies will be eligible for the new plan,
benefiting around 14,000 workers.
Last month the government announced the scheme would cater for
companies with more than 100 workers. But on Thursday, they said
the scheme would also cater for companies with more than 50
workers.
The new scheme will cost the taxpayers $4.5 million, but Key says that from an employee point of view "this is a way of maintaining pretty much their wages intact while also keeping their job and that's got to be a plus."
Winsor Engineering, a firm that employs 60 staff, is one of those that will make the cut for a nine-day working fortnight.
CEO of the firm Peter McKee is happy his firm will be included in the new scheme.
"It is certainly better news because there is some assistance available for companies of our size, because before we did feel a bit precluded," says McKee.
Workers would only get paid nine days out of 10, though the government pays $62.50 as compensation and bosses can opt to top that up.
Labour leader Phil Goff says it's still unfair not to include small businesses and anyone from the public sector.
"We shouldn't have two classes of citizenship, one if you are in the private sector one if you are in the public".
But Key disagrees with the Labour leader's views.
"The public sector has different issues at the moment, we are undergoing some changes, we are moving people from the back office to the front office, it's a different set of circumstances to those that apply in the private sector."
Winsor Engineering is still looking at the merits of the scheme with McKee saying they are looking to the future at the moment.
"We know this applies for a six month time frame. I can only say at the moment it will be something we will put into our thinking."
The Prime Minister will be looking to the future too, hoping this new scheme helps keep jobs at firms like Winsor safe.
At the moment, 117 jobs have been saved and only three companies have signed up to the scheme, though with the new plan announced, the number is expected to increase.
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