Job Support Scheme

The Job Support Scheme (JSS) is the second phase of the Government's employment support scheme; a follow on the the famous 'furlough' scheme.

The JSS will open on 1 November 2020 and run for six months, until April 2021. 

The scheme will give support to those businesses which, while having enough work to continue to employ their workers, are facing reduced demand likely to continue into the winter months. The employer must continue to pay workers for hours worked, but support through the new scheme is available for the cost of the hours not worked.

• The government will make a grant to the employer equal to the cost of one third of hours not worked up to a cap of £697.92 per month.
• The employer will bear the cost of a further one third of hours not worked.

The employer does not not need to have used the furlough scheme to be eligible, this scheme is completely standalone. 

Scheme Illustration 

This example from the BBC perhaps best illustrates how the scheme works. 

Example Calculation

Steve works five days a week and earns £1,000. Following discussion, she agrees to accept short-time working of two days per week (40%) and her employment contract is revised to reflect this. Her employer is using the JSS.

Steve is paid £800 in accordance with her employment contract through the payroll and reported through RTI in the usual way.

This comprises:

Cost borne by employer for time worked:
40% x £1,000 = £400

Cost borne by employer:

1/3 of the normal wages for time not worked: 1/3 x 60% x £1,000 = £200

Government grant:

1/3 of the normal wages for time not worked: 1/3 x 60% x £1,000 = £200

Total pay to Steve = £400

In this illustration, the employee is earning 80% of his normal wage. The 1/3 contribution rule ensures that employees on this scheme continue to earn a minimum of just over 77% of their normal wages (unless the government contribution has been capped, see above).

Further rules to note