On Friday 29 May, Rishi Sunak gave us further information about the Coronavirus Job Retention Scheme extension.
We’ve summarised the key points and what this will mean for you as employers.
From 1 August employers will have to cover National Insurance and employer pension contributions (on furlough pay).
From 1 September the amount employers can claim for furloughed employees will reduce to 70% subject to a maximum of £2,187.50 (BUT employees must still be paid 80%/£2.5k, so employers top up 10%).
From 1 October the amount employers can claim for furloughed employees will reduce to 60% subject to a maximum of £1,875 (BUT employees must still be paid 80%/£2.5k, so employers top up 20%).
The scheme will end on 31 October, so from 1 November there will be no further government funding available.
From 1 July, the scheme will change to “Flexible furloughing” – employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week.
The scheme will be closed to new entrants from 30 June, which in practice means the latest an employee can be furloughed is 10 June in order to meet the minimum 3 weeks by 30 June.
If you need further help with the Coronavirus Job Retention Scheme, book a free consultation to find out how we can help.Get a Free Consultation