What Elements of Remuneration Can Be Claimed Through The Job Retention Scheme (“JRS”)?Posted in : First Tuesday Q&A NI on 7 April 2020
On 4 April 2020, the government provided more information on the specific elements of remuneration that can be claimed when calculating the wages of those who are being furloughed.
The guidance confirms that employers can claim for any regular payments that they are obliged to pay their employees, this includes:
- past overtime;
- fees; and
- compulsory commission payments.
The following elements of remuneration cannot be included:
- discretionary bonus (including tips);
- commission payments;
- non-cash payments (including taxable benefits in kind and salary sacrifice arrangements); and
- any additional National Insurance or pension contributions.
There is still some ambiguity around what actually constitutes “past overtime” and it is hoped that the government will provide further clarity on this.
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