The New Job Support Scheme – What does it mean?
This is available to all small and medium businesses. Larger businesses will have to prove that they need financial support to be able to use the new scheme. Even if your business/place of employment didn’t previously sign up to the Furlough Scheme they will still be able to apply for assistance under the new scheme.
The new scheme will be introduced on 1 November 2020 and will last for 6 months
To be able to qualify you must have been employed since 23 September 2020.
The scheme is more complicated than the initial Furlough Scheme. We have broken it down as follows:-
- You must work a minimum of a third of your normal hours
- Your employer will pay you your normal rate
- The rest of your hours that you would usually work will be split 3 ways
– Your employer pays a third
– you pay a third (in the form of unpaid wages)
– The Government tops up your wage by a third
- Your employer must still pay your tax, National Insurance and pension contributions on your behalf
- For every hour not worked the employer and Government will each pay 1 third of the employers usual pay and the Government’s contribution will be capped at £697.92
- You must not be on redundancy notice you as will not be entitled to this scheme
Still unsure what this means?
As we have said the new scheme is not as easy to understand as the previous scheme…….and what you probably want to know is what your wages will actually look like. We have tried to break this down for you using an average salary of £20,000 per annum as an example
|% of normal hours||Employer pays||State pays||Employee receives||Wage per annum (not including NI, tax & pension contributions)|
*This information is simply for guidance and possibly subject to change.
Nikki is also still offering support and advice packages in relation to Furlough and Redundancy, please get in touch today if you need assistance.