The Chancellor of the Exchequer has announced a major update to the Job Support Scheme on the 22nd October 2020. The scheme launches on the 1st of November, the day after furlough ends so there’s not much time left to account for this grant inline with your plans for your staff.
Here’s what we know so far about the Job Support Scheme update:
- Your employees will only have to work for at least 20% of their normal working hours, which you’ll pay for as usual.
- For the hours that they don’t work, you’ll only need to pay an extra 5% of their wages to a maximum of £125 per month, plus National Insurance and pension contributions.
- The government will then contribute 61.67% of wages for hours not worked to a maximum of £1,541.75 per month.
- To put staff on the scheme, you’ll need to change their working hours. This is an amendment to their terms and conditions, so you’ll need their agreement, too.
- If your business is legally required to shut due to a local lockdown, you can still claim 67% of employees’ wages to a maximum of £2,083.33 per month.
For more information please visit HMRC
Also see our previous post relating to the Job Support Scheme.
Written by: Jenny Neale
J A Neale
23rd October 2020