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

For employers:

  • JSS grants do not cover employers’ National Insurance Contributions or pension contributions. Employers’ must pay these costs as usual. 
  • The claims portal on will open in December 2020.
  • Grants reimbursing employers for the government’s contribution will be paid in arrears, on a monthly basis.
  • Employers using the JSS will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
  • The scheme will be open to all employer's with a UK bank account ('large' businesses will face additional tests).

For employees:

  • Eligible employees must have been on payroll and have been included in a full payment submission made on or before 23 September 2020. This means that some newer employees who were not previously eligible for the furlough scheme can be entered into the JSS.
  • During the first three months of the scheme, 1 November 2020 to 31 January 2021, employees must work at least 33% of their usual hours. The government will consider increasing this minimum threshold for the following period.
  • For time not worked, employees will be paid up to two-thirds of their usual wage.
  • Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.

Link to HMRC guidance:

Still need help? Contact Us Contact Us