As businesses globally shut down in response to the coronavirus pandemic and tens of millions of workers are laid off, several plans are being canvassed by governments around the world to subsidise people's wages.

Key points: Old concepts such as a universal basic income have resurfaced as fears grow about economic contagion and people's livelihoods are put at jeopardy

Old concepts such as a universal basic income have resurfaced as fears grow about economic contagion and people's livelihoods are put at jeopardy Another concept being discussed is the idea of "reverse taxation", where governments would subsidise wages by freezing income tax payments

Another concept being discussed is the idea of "reverse taxation", where governments would subsidise wages by freezing income tax payments The Federal Government is also being urged to keep the self-employed afloat during the coronavirus crisis

Almost 25 million jobs could be lost globally due to the coronavirus, according to a UN body warning this week.

Based on different scenarios for the impact of COVID-19 on global growth, the International Labour Organisation (ILO) indicated a rise in global unemployment of between 5.3 million ("low" scenario) and 24.7 million ("high" scenario) from a base level of 188 million in 2019.

Certain groups would be disproportionately impacted, it said, including people in less-protected and lower-paid jobs, particularly youth and older workers, as well as women and migrants.

The ILO called for an "internationally-coordinated policy response" to lower the impact, including extending social protection and supporting jobs through short-time work, paid leave and other subsidies.

It has also called for further financial and tax relief, including for micro, small and medium-sized enterprises, as well as actions by central governments.

"This is no longer only a global health crisis, it is also a major labour market and economic crisis that is having a huge impact on people," according to ILO director-general Guy Ryder.

The Federal Government is now considering what additional measures it can introduce to save jobs, in the second part of a major stimulus package expected to be announced over the weekend.

Some companies are taking on new staff in the midst of the crisis. On Friday, BHP announced 1,500 jobs for machinery operators, truck drivers, diesel mechanics, boilermakers, trades assistants, electricians and cleaners would be offered as six-month contracts.

But others, like Qantas, have said they have been forced to let staff go on unpaid leave and there will be redundancies. On Wednesday, Qantas and Jetstar stood down 20,000 workers due to coronavirus.

How a universal basic income works

In the United Kingdom and United States, charities and think tanks have proposed paying people a basic income to cushion the blow of coronavirus.

The concept of a universal basic income — a system where everyone receives a standard amount of money regardless of whether they work or not — has gained prominence in recent years, with billionaire supporters including Tesla boss Elon Musk, Facebook's Mark Zuckerberg and Virgin's Richard Branson.

This periodic cash payment — which has resurfaced in global media headlines as a way to help workers throughout the coronavirus crisis as well as more broadly tackle inequality — would aim to cover peoples' basic needs.

In Australia, one of its long-time supporters has been University of Queensland professor John Quiggin.

He said if the Federal Government implements a substantial increase in Newstart and abandons quarantining welfare payments, "we'd be well on the way to universal basic income".

In its first package aimed at keeping Australians in jobs, announced last week, the Federal Government handed out $17.6 billion, which included giving welfare recipients a once-off $750. The next stage could be boosting the Newstart payment.

"What we should do is increase the benefit — the Government has already indicated there will be a temporary increase in the Newstart benefit — but we should make that permanent," Dr Quiggin said.

"The Government has had a whole range of policies aimed at pushing people off Newstart, which are now essentially impossible to apply and irrelevant where large sections of the labour force will not be able to work."

He said when the crisis is over, rather than go back to the same welfare system we have had, the Government should move permanently to a "guaranteed minimum income".

Tesla Inc chief executive Elon Musk is among famous billionaires who support a universal basic income. ( Reuters: Aly Song )

What is 'reverse taxation' and can it help?

There are, of course, other ways to help workers.

Another concept being discussed is the idea of "reverse taxation", which is also known as "negative income tax".

Under this plan, so long as firms continue to employ their staff, governments would subsidise wages by freezing income tax payments for a period of time.

It, some economists say, could help stem the tide of some of the worst-affected and most vulnerable companies laying off workers.

Britain's Prime Minister Boris Johnson is expected to soon release details of an economic plan which could include such a measure.

And while the Australian Government has not indicated it will go down this route, it is looking to overseas models for the next part of its economic stimulus plan.

National Australia Bank senior economist David de Garis said on NAB's morning podcast that as coronavirus spreads and workers around the world are at risk of losing their jobs, reverse taxation was a good option.

"You want something that's going to go to the people who need it, and you want something that's easy to administer," he said.

"Something like just reversing the direction of travel for taxation, so it goes back into the economy, makes a lot of sense."

One of the options Britain's Prime Minister Boris Johnson is being urged to consider is a system of "reverse taxation". ( Reuters: Alberto Pezzali )

Government urged to not forget the self-employed

In stage one of its economic stimulus plan, and the biggest part of its initial package at a cost of $6.7 billion, the Government said almost 700,000 small and medium businesses would receive cash payments of between $2,000 and $25,000 to help pay wages or hire extra staff.

In addition, the banking system is stepping in with relief.

Small businesses hit by the pandemic will now be able to access a six-month deferral of all loan repayments, the Australian Banking Association (ABA) said on Friday.

The repayment of $100 billion in small business loans would be put on hold during the coronavirus outbreak, which the ABA expects would put $8 billion back in small business's pockets.

The banks will also consider home loan relief measures if households enter mortgage stress.

It followed the Reserve Bank on Thursday cutting interest rates to a record low 0.25 per cent and announcing extraordinary measures to help prevent a coronavirus-driven recession.

Self-Employed Australia's executive director Ken Phillips said small business assistance needed to extend to the self-employed.

He suggested the Federal Government subsidises pay as you go (PAYG) payments to keep the self-employed afloat.

"There's just on 2 million self-employed people in Australia and more than 70 per cent of them are sole traders," Mr Phillips said.

"There's a big group in the community that are being hit immediately by this and we cannot afford to have this group fall through the support net."