Job Retention Bonus

Support provided by Gov UK

What does this involve?

The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Coronavirus Job Retention Scheme (also known as the furlough scheme), and who remains continuously employed through to 31 January 2021.

Eligible employees must earn at least £520 a month on average between 1 November 2020 and 31 January 2021.

Am I eligible?

All employers are eligible for the scheme, including recruitment agencies and umbrella companies.

An employer can claim the Job Retention Bonus for any employees that were eligible for the Coronavirus Job Retention Scheme and they claimed a grant for (that is, any employee who were successfully furloughed during the scheme).

To be eligible, employers should ensure that they have:

  • complied with their obligations to pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system for all employees
  • maintained enrolment for PAYE online
  • a UK bank account

Where a claim for an employee was incorrectly made, the employer will not be eligible for a Job Retention Bonus for that employee.

Full details of eligibility criteria are available on the UK Government website.

What does this cost?

This is a free service.

Who is this for?

Employers who have previously furloughed employees under the Coronavirus Job Retention Scheme.

How long does this take?

Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January 2021. Payments will be made to employers from February 2021.

Important information

Employers should ensure that their employee records are up-to-date, including accurately reporting their employees’ details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system.

Employers should also make sure all of their Coronavirus Job Retention Scheme claims have been accurately submitted and any necessary amendments have been notified to HMRC.

Failure to maintain accurate records may jeopardise an employer’s claim.

Next steps

Visit the UK Government website for full details and how to claim the bonus.

Support provided by Gov UK

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