How does it work?
The aim of the Scheme is to provide graduates with incentive payments intended to help repay student loans in return for working in hard-to-staff areas for up to five years. Graduates who do not have student loans will receive cash payments.
The annual bonding credits for each profession are:
Annual credit (after tax)
- Doctors $10,000 net
- Midwives $3,500 net
- Nurses $2,833 net
Graduates will be recognised for every full year worked, but must stay on the Scheme for at least three years before they receive their first lump-sum payment. In the fourth and fifth year on the Scheme, graduates will be eligible for annual payments.
For example, the payment schedule for 2010 graduates will be:
| Doctor | Midwife | Nurse | ||||||
| 2014 | $30,000 | $10,500 | $8,499 | |||||
| 2015 | $10,000 | $3,500 | $2,833 | |||||
| 2016 | $10,000 | $3,500 | $2,833 | |||||
| Total payment | $50,000 | $17,500 | $14,165 |
Prior to submitting a claim for payment, graduates will need to provide documentation from their employer and/or college as evidence of compliance with the terms and conditions of the Voluntary Bonding Scheme during the relevant bonding period and sign a declaration to confirm that they have:
- worked in a hard-to-staff community and/or specialty
- met the terms governing absences or pauses
- worked in a role that is at least 0.6 of a full time equivalent.
For any questions regarding the Scheme please contact bonding@moh.govt.nz.