Updated: Introduction of the Job Retention Bonus and CJRS
23rd July 2020
The UK Government has announced the introduction of the Job Retention Bonus. Employers will be eligible to receive a £1000 one-off payment bonus for every furloughed employee under the Coronavirus Job Retention Scheme (CJRS) who they continuously employ until 31 January 2021. The bonus will encourage employers to retain employees. Further information about the bonus scheme will be available on 31 July 2020 followed by full guidance published in autumn.
Key points of the Job Retention Bonus:
- Employees need to earn an average minimum of £520 per month for November 2020, December 2020 and January 2020
- Employees need to have been furloughed by their employees and claimed for under the CJRS
- Employers are required to have continuously employed the employees until 31 January 2021
- Employers can claim the bonus from February 2021
CJRS update – Key points for members
The table below shows key dates on the CJRS.
Key dates |
Details |
Claim by 31 July 2020 |
Employees furloughed through the CJRS on or before 30 June 2020
To be eligible to claim for future months, ensure a claim is made on or before 31 July 2020 |
Claims ending on or before 31 July |
Online examples and a calculator are available on the GOV.UK website for employers to help work out what they can claim |
From 1 August 2020
|
CJRS grants can no longer be used to cover National Insurance (NI) and pension contributions for furloughed employees – August claims can be submitted in advance, from 20 July 2020 |
From 1 September 2020 |
Employers will start contributing to furloughed employees’ wages – furloughed employees will still be eligible to receive at least 80 per cent of their usual wages; the difference is made up by employers
o In September 2020, CJRS grants will be for 70 per cent of usual wages
o In October 2020, CJRS grants will be for 60 percent of usual wages |
- Employers can delete any claims made online as long as this is within 72 hours of submitting it
- Ensure all information provided when submitting a claim is correct otherwise it can affect/delay payment of the grant
- Use the standard template form if claiming for 100 or more employees
- Live webinars providing information on changes to CJRS and how they will affect employers are available to book online
- Be aware that HMRC are contacting selected employers to discuss their claims – to ensure the correct amount is being claimed
- Remain vigilant to avoid scams from people fraudulently claiming to be from the HM Revenue and Customs (HMRC); report suspicious emails to phishing@hmrc.gov.uk and texts to 60599
References and further reading:
- HM Revenue & Customs COVID-19 update 20 July 2020:
https://content.govdelivery.com/accounts/UKHMRCED/bulletins/2967a9b
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