By Emma Hooper
The Job Retention Scheme (JRS) is coming to an end on 31 October and will be replaced with a new wage subsidy scheme called the Job Support Scheme (JSS). The JSS will begin on 1 November 2020 and will run for 6 months, aiming to support employees and businesses by topping up salaries where returning to work full-time is still not viable.
The JSS is completely independent of the JRS, meaning neither the employee nor employer needs to have previously used the JRS to be able to make a claim through the JSS.
Who is eligible?
All small and medium sized businesses are eligible, as well as larger businesses who can prove revenue has been negatively impacted by COVID-19.
Employees must be able to work at least one-third of their normal hours to be eligible.
What financial support is available?
For the unworked hours, the government and employer will each be responsible for paying one-third of the employee’s remaining wages. This means the employee will receive at least 77% of their normal pay.
The contribution payable by the JSS will have a monthly cap of £697.92.
Employer’s NIC and pension payments will not be covered by the JSS and will be payable by the employer.
If an employee who usually earns £1,000 a month has only worked 50% of their normal hours, their normal pay will be reduced to £500. The government will then pay one-third of the unworked hours, being £166.67, and the employer will pay the same. The total amount the employee will therefore receive will be £833.34.
If you have any questions about the JSS or would like us to process claims on your behalf, please let us know, as this is a service we provide.