Government contribution to wage costs under Job Support Scheme to be increased

The Government has announced that it will significantly increase the generosity and reach of its support schemes to ensure livelihoods and jobs across the UK continue to be protected in the difficult months to come during the pandemic, supporting jobs and helping to contain the virus. As far as the Job Support Scheme (JSS) is concerned, when originally announced, the JSS – which will come into effect on 1 November – saw employers paying a third of their employees’ wages for hours not worked, and required employers to be working 33% of their normal hours, But under the revised scheme, the employer’s contribution to those unworked hours will be reduced to 5%, and the minimum hours requirements is reduced to 20%, so those working just one day a week will be eligible. That means that if someone was being paid £587 for their unworked hours, the Government would be contributing £543 and their employer just £44. Employers will continue to receive the £1,000 Job Retention Bonus. The Job Support Scheme Closed for businesses legally required to close remains unchanged. HMRC have published an 18 page online Guidance document on the JSS.

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