The new Job Support Scheme will replace the existing furlough scheme when it ends on 31 October. It aims to protect ‘viable jobs’ and will see employees receive up to 77% of their usual salaries for six months.
The scheme will open on 1 November 2020 and run until the end of April 2021.
To be eligible, employees must work for at least one-third of their normal hours. The government (via wage support) and employers will step in to pay two-thirds of their remaining wages. This will enable employees to keep their job over the winter months. The government’s contribution is capped at £697.92 a month.
Employees must be on a PAYE payroll on or before 23 September 2020 and employers will be able to make a claim from December, then receive government support in arrears each month.
Employers will continue to pay the NI and pension contributions for all eligible employees on the scheme.