The calculations for the new Job Support Scheme are not easy to grasp.
In order to support viable jobs, employees must be working at least 33% of their usual hours. The level of grant will be calculated based on the employee’s usual salary, capped at £697.92 per month.
For the hours the employee doesn’t work, the government and the employer will each pay one-third of their equivalent salary. The amount the government will end up paying is calculated on a sliding scale.
|Hours employee worked
|Hours employee hasn’t worked
|Employee earnings (% of normal)
|Government grant (% of normal wages)
|Employer cost (% of normal wages)
For example, if someone works a third of their standard hours, the government’s contribution would be two-ninths – or approximately 22%.
The employer would pay the first third, like normal, and another two-ninths on top (a third of the hours not worked by the employee). The employee would get nearly 78% of their salary.
The 22% government contribution is a maximum. For someone working 50% of their hours, the government contribution is 17%.