The Employers & Manufacturers Association says the current nine day fortnight scheme disadvantages most New Zealand companies.
The government is to extend the scheme to businesses with fewer than 100 employees.
Under the current arrangement, companies with 100 or more employees can apply for a wage top-up to make up for cuts in fortnightly pay.
But the association says 93% of businesses have too few employees to qualify.
It says smaller businesses are facing cuts too, but they and their employees are not eligible for help.