27 Oct 2020 2:44 PM

Recognising how the pandemic is evolving and the impact on businesses, the Government has revisited the Job Support Scheme. As a result it has increased the scale of support available from what was originally announced.

The employee will now only need to work 20% of their usual hours and the employer will continue to pay them for the hours worked. 

Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked.

This will be made up of contributions from the employer and from the government.

The employer will pay 5% of reference salary for the hours not worked, up to a maximum of £125 per month, with the discretion to pay more if they wish.

The government will pay the remainder of 61.67%, of reference salary for the hours not worked, up to a maximum of £1,541.75 per month. This will ensure employees continue to receive at least 73% of their normal wage, where they earn £3,125 a month or less.

A reminder of who can claim and when:

  • Those on PAYE payroll between 06/04/2020 and 23/09/2020, and must have had a RTI submission between these dates
  • The Employer must have a UK, Channel Islands or Isle of Man bank account
  • The Employee can be on any type of contract (including zero hours or temporary)
  • Employees do not need to be furloughed to be eligible for the Job Support Scheme  
  • Employers will be able to top up employee wages above the level of minimum contributions at their own expense, if they wish
  • Employers can make their first claim from 8th December 2020.

Further guidance, updates and calculation examples are to be released by HMRC at the end of October. We will provide a summary of the updates as they are released.

If you have any questions please contact us.

Author: Sue Hancock