It’s also the last month of the Coronavirus Job Retention Scheme which means some big changes are coming for employers and employees alike.
The main one being that as of October 1st, the government will only pay 60% of wages (up to a maximum of £1,875) for the hours an employee is on furlough leave.
On top of that, employers now also have to pay the National Insurance Contributions (NICs) and pension contributions and top up employees pay to make sure they receive 80% of their wages this month to a maximum of £2,500.
This is the minimum level - employers can still top up their employees pay above this if they wish or are able and they can also pay employees for hours worked when not on furlough leave.
The CJRS scheme itself closes on 31st October but will immediately be replaced by the Job Support Scheme on 1st November.
This will run for six months and is designed to protect “viable” jobs that are facing lower demand in the winter months.
Companies will continue to pay their employees wages for the hours they actually work but payment for time not worked will be split three ways between the employer, the government and the employee.
The government will pay a third of these hours, the employer will also contribute a third and the employee makes up the rest by taking a reduced salary. This ensures that they will earn a minimum of 77% of their usual wages.
Employers using the Job Support Scheme are also able to claim the Job Retention Bonus if eligibility criteria is met.
Change is coming whether you are prepared for it or not. If there’s a message to be taken from 2020 this is surely it.
Some jobs will have been preserved thanks to CJRS, some might go after the scheme ends and some businesses might have some serious thinking to do regarding the Job Support Scheme and recalculating their winter financial forecasts.
We know it’s a fluid and uncertain time for nearly every company but we will always be able to offer serious advice and support based on our years of business expertise and experience.
Get in touch with us today to arrange a free initial virtual consultation at the most convenient time for you to see what options you’ve got that you might not have realised or heard about.
Once you explain your personal situation to us, we can tailor our recommendations and potential solutions entirely to you. You may be surprised by how much room for maneuver you have but this won’t last forever - the longer you delay, the less options you’ll have to consider.