HM Treasury has today announced that the Government contribution to employers’ wage costs under the Job Support Scheme (JSS) will be increased. Employers will be expected to pay 5% of the cost of unworked hours instead of the 33% originally announced.
The JSS, which was announced on 24 September 2020, opens on 1 November 2020 and is intended to run for six months. As originally announced, the JSS would require employers to pay a third of their employees’ wages for hours not worked, and require employees to be working 33% of their normal hours.
Today’s announcement reduces the employer contribution to those unworked hours to 5% and reduces the minimum hours requirement to 20%, so those working just one day a week will be eligible.
Employers will continue to receive the £1,000 Job Retention Bonus. The scheme for businesses legally required to close remains unchanged.
Link to Gov.uk - Plan for Jobs: Chancellor increases financial support for businesses and workers
If you have any queries regarding the Job Support Scheme, the furlough scheme or redundancy, please contact a member of the Geldards Employment Team.