Coronavirus Job Retention Scheme (CJRS)
The Coronavirus Job Retention Scheme (CJRS) runs until 31 October 2020, with staged decreases in the claims that can be made. From the 1 August employers could no longer claim back Employers National Insurance and Employer Pension Contributions paid for furloughed employees. The next change happens on 1 September.
From 1 September CJRS will pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work. This is down from 80%, capped at £2,500 per month.
Employers will still be required to pay furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will therefore incur the difference in the cost been the 70% being claimed and the amount being paid.
Employers will continue to have to pay furloughed employees’ Employers National Insurance and Employers Pension Contributions following the changes on 1 August.
Important Dates
1 September – the grant will cover 70% (capped at £2,187.50) of furloughed employees gross wages, down from 80% (capped at £2,500).
1 October – the grant will cover 60% (capped at £1,875) of furloughed employees gross wages, down from 70% in September (capped at £2,187.50).
31 October – the furlough scheme will close.
UK Government guidance on the Coronavirus Job Retention Scheme can be found here.
Links
Our previous updates can be found on Facebook and LinkedIn or on our website blog.
A UK Government business support website can be found here. It contains guidance on all Coronavirus financial measures and business advice.
A UK Government general COVID-19 support website can be found here. It contains guidance on all matters pertaining to the Coronavirus.
We will continue to monitor the situation and keep you informed. If you have any concerns, please do not hesitate to contact us.
