New guidance has been issued to employers on how to claim through the UK government Job Retention Bonus.
The initiative will work alongside the new Job Support Scheme, which launches on 1 November, and could be worth more than 60% of average wages of workers who have been furloughed and are kept on until the start of February 2021.
Businesses can claim for the bonus, designed to continue to support jobs through the UK’s economic recovery from coronavirus, from 15 February until the end of March.
Employers will still be able to claim even if they are receiving support from the Job Support Scheme, which will protect jobs in businesses facing lower demand over the winter months due to coronavirus.
The £1,000 Job Retention Bonus is equal to a 20% wage subsidy for the employment costs of the average person previously furloughed, but for those on lower incomes, it equates to 40% of wage costs over the three-month period to the end of January 2021.
Chancellor Rishi Sunak said: “The Job Retention Bonus is an additional boost employers can receive on top of the extensive support we’ve already put in place for businesses, including loans, grants and our new Job Support Scheme.
“I know how hard employers have worked to bring furloughed staff back, and this bonus, equal to a 20% wage subsidy, will help ensure they continue to retain them.”
Through the Job Support Scheme, the government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand. The scheme will be open to employers across the UK even if they have not previously used the furlough scheme.
Check your eligibility and find out how to apply by clicking here.