How will the new Job Support Scheme work?
What is the Job Support Scheme?
The Job Support Scheme will run for six months from 1 November 2020. The Scheme acts as a wage subsidy for employers that are unable to offer their employees full-time hours.
To be eligible, employees must work for at least one-third of their standard working hours. For the remaining hours not worked the employer pays a third, the government pays a third and the employee receives no pay for the remaining third.
The Scheme has been established to help those in ‘viable’ jobs.
An example of the Job Support Scheme
For example, an employee usually earns £2,000 a month but, under the Job Support Scheme, they are working half of their hours. The employer pays the £1,000 for their time. Of the remaining £1,000 (where the employee is not working) the employer pays a third and the government pays a third. Overall, in this example, the employee takes home £1,666 a month and is working for half of their contractual hours.
What counts as a ‘viable’ job?
A ‘viable’ job is still quite loosely defined. Presently, a viable job is one where there is a current need for it but not yet at full capacity. An example of a viable job would be waiting staff at a restaurant that is reopening a few days a week.
How much do employers pay under the Job Support Scheme?
Under the Job Support Scheme, employers will be paying more than they did under the Furlough Scheme. Under the Furlough Scheme, the government paid 80% of workers’ wages but under the Job Support Scheme, the government will only be paying a maximum of 22% (a third of a third).
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