CHANGES TO THE CORONAVIRUS JOB RETENTION SCHEME


July 1st, 2020.


From today, the 1st of July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim the Coronavirus Job Retention Scheme (CJRS) grant for the hours not worked.


The CJRS will close on the 31st of October 2020. Prior to that, the level of grant will be reduced each month as follows, however, the employee will still be entitled to 80 per cent of wages.

For June and July, the government will pay 80 per cent of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work

For August, the government will pay 80 per cent of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.

For September, the government will pay 70 per cent of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80 per cent of their wages up to a cap of £2,500, for time they are furloughed.

For October, the government will pay 60 per cent of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80 per cent of their wages up to a cap of £2,500, for time they are furloughed.

Employers will continue to able to choose to top up employee wages above the 80 per cent total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.

The table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.

Visit www.gov.uk for more information, or click here to go directly to the page outlining the changes.

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