A new Job Support Scheme (JSS) to launch from 1st November and modified dated 22nd Oct 2020 with two types of support,
- JSS Open
- JSS Closed
Both schemes will run for 6 months to protect jobs where small businesses and provides different types of support to these businesses according to the situations.
For Business that are remain open but are facing lower demand over the winter months due to COVID-19. JSS OPEN scheme helps to keep employees attached to the workforce. You can download free ebook containing the key insight for winter economy plan by clicking here.
- Employees must be on an employer’s PAYE payroll including RTI submitted on or before 23 September 2020
- Employee must work at least 20% of their usual work hours and Employer will continue to pay the wages for the hours of staff work
- For the hours not worked,
- the Government will pay a 61.67% of their usual wages (Grant is capped at £1,541.75 per month).
- Employer should contribute 5% of the usual pay for hours not worked, up to a maximum of £125 per month with the discretion to pay more than this if they wish.
- Grant will not cover employer NICs or pension contributions, though remain payable by Employer
- “Usual wages” calculations will follow a similar methodology as for the Coronavirus Job Retention Scheme. Full details of Job Support Scheme will be shared shortly.
- The scheme is available to all small business (employer) even if previously not used the Coronavirus Job Retention Scheme.
- Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
For Business that are closed. JSS CLOSED scheme will be applicable. The only difference here is that the UK government will fund 2/3 rd of employees’ usual wages for time not worked, up to a maximum of £2,083.33 per month. Employers will not be required to contribute, but they can top up the government’s contribution if they choose to.
Below example is just to illustrate the grant amount, NI & pension will be calculated as usual payable by Employer under JSS OPEN scheme.
|Scenario 1||Scenario 2||Scenario 3||Scenario 4|
|Monthly Salary||£ 6,000.00||£ 6,000.00||£ 2,400.00||£ 3000.00|
|Worked hours||£ 1,200.00 (1/5)||£2,000.00 (1/3)||£ 480.00 (1/5)||£ 600.00 (1/5)|
|Total Unpaid||£ 4,800.00||£ 4,000.00||£ 1,920.00||£ 2,400.00|
|Employer Contribute||£ 1,25.00 (C)||£ 1,25.00 (C)||£ 96.00||£ 120.00|
|Govt. Grant||£1,541.75 (C)||£1,541.75 (C)||£ 1184.00||£ 1480.00|