To ensure we are providing you with as much support and information regarding the Government’s Coronavirus initiatives, here are the latest updates regarding the Coronavirus Job Retention Scheme (CJRS) for furloughed employees. 

During the government briefing on Friday 29th May, Chancellor Rishi Sunak confirmed the changes to the CJRS, in line with the easing of lockdown restrictions and the extension of the scheme until the end of October. 

Under the current scheme, the Government will pay back to the employer 80% of each furloughed employee’s salary, up to a maximum of £2,500 per employee, plus the National Insurance paid, as well as the minimum employer pension contribution paid (even if you pay a higher contribution). 

However, new plans have been laid out to ensure that the scheme can continue to protect jobs and businesses as the nation returns to work. From the 1st July, companies will be given the flexibility to allow furloughed workers to return part-time, while being responsible for paying the wages for agreed new working hours.  

The Chancellor also stated that from August, the level of government support provided through the scheme will be ‘tapered’ to reflect businesses reopening post-lockdown and more people returning to work. The government will continue to contribute 80% of furloughed staff wages until then. After the 1st August, businesses will be asked to contribute a share of the salary – individuals will continue to receive 80% of their salary until they return back to the workplace. 

The new timescales for the schemes are: 

1st June – 31st July: The CJRS will continue to run as normal, with the government paying 80% of wages, up to a maximum of £2,500, ER NICS and pension contributions. 

30th June: The furlough scheme closes to new entrants. 

August: The government will continue to pay 80% of wages up to a cap of £2,500 for furloughed staff. Employers will now be responsible for paying ER NICs and pension contributions. 

September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions, plus 10% of wages to make up the 80% wage cost, up to a cap of £2,500.

October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions, plus 20% of wages to make up 80% of the salary, up to a cap of £2,500. Under the current plans, the scheme ends at the end of the month, with the government making no more salary contributions. 

If you need any advice regarding the changes to the CJRS, or would like to discuss how the changes may affect your business, our team are happy to help