The level of grant available to employers under the Coronavirus Job Retention Scheme (furlough) is changing from 1 July 2021, with employers being required to contribute 10%. In this article, we examine the changes.
In the spring Budget, the government extended the Coronavirus Job Retention Scheme (CJRS) to 30 September 2021. At the same time, it changed how much the government is contributing toward furloughed employees’ wages from 1 July 2021.
From 1 July 2021, the level of grant will reduce, and employers will be required to contribute more towards their furloughed employees’ wages.
The table below shows how much the government will contribute in the coming months, the contribution required from employers and how much an employee receives per month where the employee is furloughed 100% of the time. Wage caps are proportional to the hours not worked.
for hours not worked
|80% up to £2,500||70% up to £2,187.50||60% up to £1,875||60% up to £1,875|
|Employer contribution: employer |
and pension contributions
|Employer contribution |
wages for hours
|No||10% up to £312.50||20% up to £625||20% up to £625|
|For hours not worked employee receives||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
Employers can continue to top up an employee’s wages above 80% and £2,500 cap for hours not worked at their own expense.
You can find out more information about the latest changes to the Coronavirus Job Retention Scheme here.
If you have any queries in relation to the Coronavirus Job Retention Scheme or any other Covid-19 support package, please contact us.
Warning: The above is merely general guidance and should not be relied upon as formal advice. The advice we give to each client will depend on their specific circumstances. We suggest you take professional advice before taking any action in relation to the issues discussed above.