Job retention bonus for employers8 July 2020
Today (8 July 2020) the Chancellor, Rishi Sunak, announced a £1,000 “job retention bonus” for employers that bring employees back from furlough and continue to employ them until at least January 2021. Those employees returning from furlough must earn at least the lower earning limit for national insurance (£520 per month) between November 2020 and January 2021 in order for employers to be eligible for the pay-out which applies per staff member.
As a reminder, “flexible furlough” has been available since 1 July 2020 and the government contribution to the Coronavirus Job Retention Scheme (the “Scheme”) will vary on the following dates and end on 31 October 2020:
- 1 August 2020: employers will have to pay employees’ (i) national insurance contributions (NICs) and (ii) pension contributions;
- 1 September 2020: the Scheme will reimburse 70% of salary (up to a maximum of £2,190) with employers required to top up to 80% (or such level as agreed with employees) and cover NICs and pension contributions;
- 1 October 2020: the Scheme will reimburse 60% of salary (up to a maximum of £1,875) with employers required to top up to 80% (or such level as agreed with employees) and cover NICs and pension contributions.