Arla Propertymark has said agents on commission must be considered in the UK Government’s Job Retention Scheme.
In a letter to Alok Sharma, secretary of state for Business, Energy and Industrial Strategy, Propertymark urged him to promptly allow agents to include employee’s full salaries under the variable pay element of the Coronavirus Job Retention Scheme.
Whilst Propertymark welcomes the Government’s support through the Job Retention Scheme, it said it has also been contacted by members who are still facing financial difficulty as the scheme “does not provide for their circumstances”.
It added that, 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% 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”.
However, for agents, “fees, commission and bonuses should not be included”.
In a statement Arla Propertymark said: “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.”