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Job Support Scheme (JSS) Extension

The new JSS is due to come into effect on 1 November 2020, once the previous furlough scheme comes to an end this month.

Originally it required employers to pay around a third of their employees’ wages for hours not worked and required employees to work at least 33 per cent of their normal hours.

In recognition of the difficulties businesses are facing, particularly in some adversely affected sectors, the JSS will now only require employers to make a five per cent financial contribution towards unworked hours, while the Government will contribute 61.67 per cent (capped at £1,541.75).

The latest change will also see the minimum hours requirements for employees cut to just 20 per cent of their regular working time.

As an example, under the new scheme if an employee is usually paid £600 for working 40 hours in a week, but their hours are cut by their employer to 20 per cent of their normal time (8 hours), they will be paid £120 for their time worked, plus £24 in employer contributions and £296 in Government support for the time not worked. This would mean that they still receive weekly gross pay of £440.

The Chancellor confirmed that the extended version of the JSS can still be used alongside the £1,000 Job Retention Bonus and did not affect the other elements of the JSS for businesses legally required to close, which cover around two-thirds of an employee’s wage.