Staff on commission must be considered in Job Retention Scheme

In a letter to Alok Sharma, Secretary of State for Business, Energy and Industrial Strategy, Propertymark has urged him to promptly allow agents to include employee’s full salaries under the variable pay element of the Coronavirus Job Retention Scheme.

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Whilst Propertymark welcomes the Government’s support through the Job Retention Scheme, we have been contacted by members who are still facing financial difficulty as the scheme does not provide for their circumstances. Predominantly agents earn a basic salary which is topped up through commission.

The Government’s Guidance states that the scheme will “provide employers with a grant from HMRC to cover the lower of 80 per cent of an employee’s regular wage or £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage”.  Crucially however for agents, “fees, commission and bonuses should not be included”.

With negotiators and even managers on a  basic salary and earning a living by hitting on target earnings (OTE), under the Coronavirus Job Retention Scheme a sales negotiator will be reduced to a minimal amount per month before tax, which in some cases won’t be enough to pay the rent or mortgage on their own homes.

It’s vital that the Government recognise the contribution the sector makes to society and the specific support that we need.

Please be assured that we are raising issues and representing members to all Governments across the UK and will continue to ensure the industry has all the guidance, information and resources it needs.

#KEEPTHERENTFLOWING CAMPAIGN

Since the Coronavirus outbreak, Propertymark has been engaging with governments and politicians across the UK to ensure agents and landlords have information and resources they need to protect tenants and #KeepTheRentFlowing.

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