With the fear of further lockdowns and our own current Circuit Breaker in Northern Ireland as we continue to face Covid-19 head on. The Chancellor of the Exchequer Rishi Sunak, has today (22/10/2020) stated a further increase in support the current Job Support Scheme (JSS).
The current furlough scheme is set to end on 31st October 2020 and the Job Support Scheme comes into effect immediately after on 1st November 2020 and is set to run for a further 6 months. Originally, we had seen it to be a 1/3 rule scheme where the Government was due to pay 33%, employers would pay 33% and employees were required to be working 33% of their normal hours.
In hope to protect jobs, the Chancellor has today announced that the employer contribution for unworked hours is now 5% and reduced required working hours to 20%.
So what does this all really mean?
- From November 1st for every hour not worked, the employee will be paid two-thirds of their usual salary.
- The employee will be required to work a minimum of 20% of their normal working hours.
- 67% will be provided by the Government for hours not worked. This is a max of £1541.75 per month. This will ensure that employees earn a minimum of at least 73% of their normal wages.
- Employers will pay 5% of non-worked hours, capped at £125 per month, and NICS and automatic enrolment pension contributions in full as a contribution. Employers can top up employee’s wages above 5% contribution at their own discretion.
- All employers with a UK Bank account and UK PAYE schemes can claim the grant. Neither the employer nor employee needs to have used the previous furlough scheme.
- Employees must be on an employer’s PAYE payroll between 6th April 2019 and 23rd September 2020.
- Employees on any type of contract are eligible.
- Employers using JSS scheme will still be eligible to claim the Job Retention Bonus in January which is £1,000 per employee that was on these schemes that remains on the payroll and has not been made redundant.
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