Job Retention Bonus
July 31, 2020
The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. The scheme is designed to continue to support jobs through the UK’s economic recovery from Coronavirus by encouraging and helping employers to retain as many employees who’ve been on furlough as possible.
Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.
An employer will be able to claim the Job Retention Bonus for any employees that were eligible for the Coronavirus Job Retention Scheme and they have claimed a grant for. Where a claim for an employee was incorrectly made, a Job Retention Bonus will not be payable and as the scheme is designed to protect jobs, those who are serving notice for redundancy will not be eligible for the bonus.
For full details on the Job Retention Bonus visit https://www.gov.uk/government/publications/job-retention-bonus/job-retention-bonus
Further Information on the Coronavirus Job Retention Scheme:
– The CJRS grant will be tapered from August. In August, the government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work – 5% of average gross employment costs.
– In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
– In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.