CJRS Update04 - 06 - 2020How, from August 1st employers will
share the cost of the furlough scheme
The Chancellor has revealed how employers will be expected to share the
cost of the Coronavirus Job Retention
Scheme for furloughed workers.
To enable employers to retain employees who they
otherwise may have been forced to lay off during the coronavirus (Covid-19)
pandemic, the Government introduced the CoronaVirus Job retention Scheme. Currently, the scheme allows employers to claim 80% of furloughed employees’ wages, National Insurance (NI) and
pension contributions.
The Chancellor, had recently extended the furlough scheme until the end of October. At the time, he indicated that employers
would be expected to share the cost of the scheme and that furloughed workers
would be able to return to work on a part-time basis in the future, and that
the full scheme would end in October.
The following changes to the scheme have now been confirmed:
- From 1st July, furloughed employees will be able to
return to work on a part-time basis if required. Employers will be able to
claim 80% of the wages, employer’s NI and pension contributions for the
proportion of contracted hours that furloughed employees do not work
during this month.
- From 1st August, employers will have to pay the
employer’s NI and pension contributions for all their furloughed
employees. The scheme will continue to cover 80% of furloughed workers’
wages, capped at £2,500 per employee per month.
- From 1st September, the scope of the scheme will be
reduced to cover 70% of furloughed workers’ wages, capped at £2,187.50 per
employee per month. Employers will have to continue to pay the employer’s
NI and pension contributions for their furloughed employees.
- From 1st October, the scope of the scheme will be
reduced further to cover 60% of furloughed workers’ wages, capped at
£1,875 per employee per month. Employers will have to continue to pay the
employer’s NI and pension contributions for their furloughed employees.
For
further information contactus@foremansllp.com