Treasury issues job retention bonus guidance
5th October 2020
The Treasury has attempted to clarify how businesses can claim the job retention bonus from next year.
The bonus will work alongside the new job support scheme, which was introduced to continue to support jobs through the UK’s economic recovery from the COVID-19 pandemic and helping employees retain as many employees placed on furlough as possible.
It could be worth more than 60% of a furloughed worker’s average wage if they are kept on until the start of February 2021.
The £1,000 bonus is equal to a 20% wage subsidy for the employment costs of the average person previously furloughed.
However, for those furloughed workers on lower incomes, it’s 40% of wage costs over the three-month period to the end of January 2021.
Businesses can claim for the bonus from 15 February until the end of March 2021.
Chancellor Rishi Sunak said:
“The job retention bonus is an additional boost employers can receive on top of the extensive support already in place for businesses, including loans, grants and the 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.”
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