If its subsidized by the government, how is it a paycut? Similar programs in the US exist, for example states paying a 50% unemployment payment for employees who have their hours cut by 50%. Its a win-win - companies effectively pay nothing to keep their employees at a full time salary for reduced hours, and the government avoids needing to pay out full unemployment benefits to laid off employees.
For the 60% bracket the company reduces your working hours by 60% and you get a paycut of 7.5%. The government covers the difference, effectively reducing the cost for the company by 53%.
Edit: see this for an example of the program in California: https://www.edd.ca.gov/Unemployment/Work_Sharing_Program.htm