Coronavirus Job Retention Scheme: What Next
- AuthorJames Hodgson
What are the main implications for employers and employees?
In the final month of The Job Retention Scheme there are some significant changes that employers and employees should be aware of.
- The amount employers can claim was reduced on 1 October to 60% of wages (capped at £1,875).
- Employers need to keep paying furloughed staff 80% of their usual wages up to £2,500 per month (or more if that’s been agreed with the employee or worker).
- Employers will also need to continue paying employee national insurance and employer pension contributions
What is the Job Support Scheme?
From 1 November 2020 the furlough scheme will be replaced by a new government-funded system of support - the Job Support Scheme (JSS).
- JSS is designed to support jobs which are not entirely dependent on government funds.
- Businesses which are operating but facing decreased demand can claim support for wages through JSS Open.
- Businesses which are legally required to close their premises as a direct result of coronavirus restrictions can claim support through JSS Closed.
- The scheme will run until the end of April 2021.