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:
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