Examples of how “JSS + CJRS Bonus” can provide more support for workers to 31 January 2021
As set out in our blog, businesses should seek to ensure staff who may have to work reduced hours in the coming months due to the Coronavirus restrictions qualify for both the Job Support Scheme (“JSS”) and the CJRS Bonus due on 31 January 2021 where possible.
There are detailed criteria for both the JSS and the CJRS Bonus, and businesses who can ensure that staff on reduced hours qualify for both will obtain the greatest benefit from Government support for those jobs between 1 November 2020 and 31 January 2021.
The following graph shows some worked examples of the cost of employing a person on a salary of £16,500 a year and that person working reduced hours (with a comparison against 100% of normal worked hours).
The graph illustrates that the Government will support significantly more of the cost of an employee who is on reduced hours to 31 January 2021 if they qualify for both the JSS and the CJRS Bonus.
The level of support reduces as employees’ wages increase beyond £16,500 therefore it is important that you model and assess the impact on your workforce on an employee-by-employee basis to truly understand the effect on your business.
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