How much will the Government contribute to employees' wages under the Job Support Scheme?

Under the Job Support Scheme (JSS) for businesses that are allowed to continue operating under coronavirus (COVID-19) restrictions, an employee can work fewer than their usual hours and the Government will contribute towards their wages for the hours they do not work. The Government contribution is 61.67% of the usual pay for the hours the employee does not work (up to a cap).

The employee must work at least 20% of their usual hours, and the employer must pay them their usual pay for the hours they work.

For the hours they do not work, the employer is responsible for paying 5% and the Government will contribute 61.67% (capped at £1,541.75 a month), meaning the employee will receive two-thirds of their usual pay for the hours they do not work.

Take as an example an employee who usually works five days a week and is paid £600 per week. If their hours are reduced to one day a week under the scheme (the minimum 20% required), their weekly pay will be:

  • £120 paid by the employer for the hours worked;
  • £24 paid by the employer, ie 5% of £480, the usual pay for the hours not worked; and
  • £296.02 contributed by the Government, ie 61.67% of £480, the usual pay for the hours not worked.
  • The employee will receive £440.02 in total.

As a further example, if an employee usually works three days a week and is paid £300 per week; if their hours are reduced to one day a week under the scheme, their weekly pay will be:

  • £100 paid by the employer for the hours worked;
  • £10 paid by the employer, ie 5% of £200, the usual pay for the hours not worked; and
  • £123.34 contributed by the Government, ie 61.67% of £200, the usual pay for the hours not worked.
  • The employee will receive £233.34 in total.

The Job Support Scheme will run from 1 November 2020 for six months to 30 April 2021. Employers must pay the Government contribution to the employee and make a claim for reimbursement. Payments under the scheme will be made monthly in arrears.

Separate funding is available under the Job Support Scheme for businesses that are required to close under local or national coronavirus restrictions.