Provided an employee works a minimum of 20% of their usual hours (down from 1/3rd), and the employer continues to pay them as normal for those hours:
- the government will contribute 61.67% of their pay (subject to a cap of £1,541.75 per month) – up from 1/3rd; and
- the employer will have to contribute only 5% of their pay (subject to a cap of £125 per month)
for their unworked time. This means that employees will receive at least 73% of their normal pay provided they earn no more than the reference salary of £3,125 per month. Those who do earn more than this will receive proportionately less.
However, the government has said this extra level of support will be “reviewed in the new year”.
Further information on the JSS scheme can be found on the Government website at https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme
Where an employee cannot work due to an employer’s obligation to close their premises as a result of coronavirus restrictions imposed by one of the UK’s four governments, they will be entitled to two-thirds of their normal pay from their employer, which will be fully funded by the government up to a cap of £2,083.33 per month.
Under both the JSS Open and the JSS Closed:
- the employer can top up the minimum payments due to employees at its discretion;
- income tax, National Insurance and pension contributions are payable on the amounts paid to the employee; and
- the employer bears the cost of all of the employer National Insurance and pension contributions.