Coronavirus Job Retention Scheme £1k bonus for employers
Employers will be able to claim a one-off bonus of £1,000 for each furloughed employee brought back to work if they are still employed on 31 January 2021.
Businesses currently considering redundancies should be aware of this financial incentive to bring staff back to work.
The bonus was announced by the Chancellor Rishi Sunak on 8 July 2020. However, it will be possible to claim this one-off payment for employees whether they were brought back from leave before or after the Chancellor’s announcement.
The bonus forms part of the Government’s “Plan for Jobs” and the winding down of the Job Retention Scheme, which will end on 31 October 2020.
Since 1 July 2020, businesses have been able to bring furloughed workers back on a part-time basis. From August, the amount employers can claim for furloughed employees’ wages will reduce. In August, the Government will continue to pay 80% of wages up to £2,500, however employers will have to cover Employer National Insurance and pension contributions themselves. From September, the Government will pay 70% of wage costs, and 60% from October.