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Changes to Coronavirus Job Retention Scheme

18 June 2020 by Crystal HR & Payroll Ltd

From 1st July there are a number of changes to coronavirus job retention scheme.  Employers can begin to bring furloughed employees back to work for any amount of time and still be able to claim under the Coronavirus Job Retention Scheme, (CJRS) for any hours not worked.

Starting on 1st August 2020, the amount of the grant will be reduced and the table below shows the timetable for the changes:

The wage caps introduced will be proportional to the hours and employee is furloughed.  As an example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual working hours.

JulyAugustSeptemberOctober
Government contribution: employer NICs and pension contributionsYesNoNoNo
Government contribution: wages80% up to £2,50080% up to £2,50070% up to £2,187.5060% up to £1,875
Employer contribution: employer NICs and pension contributionsNoYesYesYes
Employer contribution: wages10% up to £312.5020% up to £625
Employee receives80% up to £2,500 per month80% up to £2,500 per month80% up to £2,500 per month80% up to £2,500 per month
  • June

No changes to the scheme or grant levels.

  • July

In June and July the government will pay 80% of the wages to a maximum cap of £2,500 for the hours and employee is furloughed as well as the employers National Insurance Contributions and pension contributions.  Employers will have to pay employees for any hours they work.

  • August

The government will pay 80% of the employees wages to the cap of £2,500 for the hours the employee is furloughed and employers will pay employers National Insurance and pension contributions for the hours the employee is furloughed.

  • September

The government will pay 70% of the employees wages to a maximum cap of £2,187.50 for the hours the employee is furloughed and employers will pay employers National Insurance and pension contributions and top up employees wages to ensure they receive 80%  to the cap of £2,500 for the hours the employee is furloughed.

  • October

In October the government will pay 60% of the employees wages to a maximum cap of £1,875.00 for the hours the employee is furloughed and employers will pay employers National Insurance and pension contributions and top up employees wages to ensure they receive 80%  to the cap of £2,500 for the hours the employee is furloughed.

Employers can continue to able to choose to top up employee wages above the 80% 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.

On 31st October 2020 the Coronavirus Job Retention Scheme will close.

You can find help and support as part of the governments business support packages on their website, .GOV.UK

If you need help with claiming under the Job Retention Scheme, get in touch.

 

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