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Government Co-funded Payroll Scheme: Phase 2

24 April 2020

Coronavirus: economic business support package

The Government of Jersey has published further details of Phase 2 of the Co-funded Payroll Scheme (CFPS). This scheme aims to ensure that businesses, charities and self-employed people disrupted by Covid-19 can access the funds they need to protect workers and reduce redundancies. 
This scheme is the largest economic support package ever launched in Jersey. It will cost up to £138 million over 3 months and will support around 27,000 employees.
In April, May and June 2020, the Government will refund employers, including charities, a maximum of £1600 per employee (80 per cent of a worker’s salary up to £2000) per month. This funding is available to employers who continue to pay their agreed wages in the usual way and can demonstrate a drop in turnover of at least 30 per cent in the month due to COVID-19.
The scheme will provide additional support for employers who wish to retain staff and protect jobs but cannot meet the 20% contribution towards salaries, due to severe cash-flow or working capital problems. If this is the case, once they have complied with certain conditions, the employer can apply to make a smaller contribution towards their salary bill. This is designed to help vulnerable businesses to survive at this unprecedented time, thereby protecting the income of employees who are most at risk of redundancy.
Self-employed Islanders affected by Covid-19 business disruption, will also be eligible for a payment of 80 per cent of their average gross monthly income (based on figures for 2019), up to £1600 per month for April, May and June 2020.
Employers and self-employed people will be able to apply for Phase 2 CFPS using an online form which will be available from 1 May. 
You can find further details on Phase 2 here.

As of Wednesday 22 April, Phase 1 of the scheme had seen 713 businesses claim for 5512 employees at a cost of £1,605,377.

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