The government’s Coronavirus Job Retention Scheme (CJRS) has been extended across the UK until 30 September 2021. This scheme enables you to claim government support for paying your employees if you need to put them on temporary leave from work – known as ‘furlough’.
You can furlough employees for all or part of the hours they normally work. You don’t need to have used the CJRS previously to access it now.
Up to 30 June 2021, a government grant will cover 80% of furloughed employees’ current salaries for the hours they don’t work, up to a limit of £2,500 a month (depending on the level of non-working hours). As an employer, you’ll only have to pay National Insurance and pension contributions (although you can, if you want to, top your employees’ pay up to 100% at your own expense).
From 1 July 2021 the government grant to cover employees’ salary will start to fall and employers will be required to contribute, as well as continuing to pay National Insurance and pension contributions.
- During July the government grant falls to 70%, up to a maximum of £2,187.50 a month. Employers will be required to contribute 10%, up to a limit of £312.50 a month.
- During August and September it will be 60%, up to a maximum of £1,875 a month. Employers will be required to contribute 20%, up to a limit of £625 a month. This is set out in the table below.
|Percentage of salary covered by government furlough grant||80%||80%||70%||60%||60%|
You can find out more at www.gov.uk.