The Chancellor announced changes to the Job Support Scheme (JSS) on 22 October 2020. In North Devon/Torridge we are currently a tier one area, the significant change to the JSS for this tier is:
The employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked.
Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked – this will be made up of contributions from the employer and from the government. The employer will pay 5% of reference salary for the hours not worked, up to a maximum of £125 per month, with the discretion to pay more than this if they wish. The government will pay the remainder of 61.67%, of reference salary for the hours not worked, up to a maximum of £1,541.75 per month. This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.
The logic of 73% of normal wages figure above is 20% for hours worked and paid, plus 5% of the remaining 80% paid by the employer (thus 4%) plus 61.67% of the remaining 80% paid by the government (thus 49.336%) 20%+4%+49.336% = 73.336%.
(Correct as of 22 October 2020)
