Updated 23rd October
Chancellor Rishi Sunak has announced today a further amendment to the Job Support Scheme, which is due to begin on 1 November 2020.
The schemes will now be known as JSS Open and JSS Closed, the latter being for those businesses which have been required to close under lockdown regulations.
Under JSS Open:
- An employee will need to work at least 20% (no longer 33%) of their normal hours. They will receive normal pay for the hours they work, and two-thirds of pay (subject to a cap which bites against those earning more than £3,125 a month) for the hours they do not work.
- For that two-thirds top-up, the government will pay 61.67% and the employer will pay 5%, plus NI and pension contributions on the full amount. That is a significant change from the previous 50:50 split towards the two-thirds top-up, shifting the financial cost overwhelmingly to the public purse.
- There must be a written agreement between employer and employee, agreeing to the changes.
Under JSS Closed:
- The position remains that the employee will receive two-thirds of their normal wages, funded by the government (again, with a cap biting against those who earn more than £3,125pm).
- The employer will have to pay the NI and pension contributions on that amount. Again, there must be a written agreement between employer and employee, agreeing to the changes.
HMRC has published a policy paper containing more details on the Job Support Scheme.
If you require any further help or assistance with the new changes. Then please get in contact with a member of the Ward Williams HR on 01932 830664 or email sally.phillips@wardwilliams.co.uk.