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The co-funded payroll scheme has been increased to 90% of an employee’s pay for licensed premises, food wholesalers and gyms which have been affected by the hospitality circuit breaker.
Previously capped at 80% or £1,600 per employee, the scheme will now fund up to £1,800 per employee.
The contribution will be calculated based on the financial detriment a business has suffered compared to the previous year, plus an additional 20%. This means that businesses that have experienced 70% or more in losses will therefore qualify for the higher rate of subsidy.
This enhanced Co-Funded Payroll Scheme (CFPS) will be in place until at least March 2021 and will be subject to regular review.
Pictured: Social security and GST contributions can be deferred for businesses which have been forced to close.
New businesses established since March 2020 in sectors which have been forced to close due to public health measures can also now qualify for the payroll scheme.
In addition, businesses will be able to continue to defer their GST and Social Security Contribution deferrals. Businesses which have had to close will be eligible to defer their contributions for the last quarter of 2020 up to two years.
Businesses which need further time to pay any outstanding contributions for the third quarter will also have up to two years to make their payment.
The Bank Loan Guarantee Scheme – which sees the Government underwriting 80% of a loan - has also been extended in to 2021 with a guarantee of £3 million available until the end of March 2021.
These new support measures follow a previous upgrade of the payroll scheme and the creation of the Attractions an Events and Support Scheme. For the first time, they specifically name the wholesale sector, which had previously been forgotten.
Pictured: The Minister for Economic Development, Senator Lyndon Farnham.
“The Co-Funded Payroll Scheme has successfully supported thousands of jobs and has helped keep hundreds of businesses operating throughout the pandemic, but it’s important that we continue to assess the situation and make amendments to the scheme as and when required,” the Minister for Economic Development, Senator Lyndon Farnham, said.
“It is essential to help local business withstand the impact of the public measures, so Ministers have decided to enhance the support, especially those sectors which have been hardest hit.
“The amended schemes that we are introducing will continue to protect jobs and focus on the businesses that have been most affected by the strict measures we have introduced to help counter the pandemic”
Pictured: Hospitality and fitness venues have been closed for three weeks.
Hospitality and fitness venues were closed from midnight on 4 December and are set to remain closed potentially until 4 January.
The ‘lockdown-lite’ came after Jersey experiencing its worst ever rise in confirmed case numbers in a single day - 56 - taking the total to more than 330.
Yesterday, the number of current cases reached 1,019 with an extra 109 cases being found since Sunday, and 27 people being listed as 'recovered.'
The island looks on track to reach the 'worst-case scenario' total of 1,100 active cases by Boxing Day, which was set out by the Deputy Medical Officer of Health, Dr Ivan Muscat on 2nd December, when he was explaining the rationale for a 'lockdown-lite' with the closure of the hospitality industry - which was intended to help stop the island reaching that position.
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