Help Centre for Employers

Will grants under the Coronavirus Job Retention scheme cover pension contributions?

Yes. These grants are intended to support business and their employees by covering up to 80% of the costs of employment up to an overall cap of £2,805 for each employee.

That includes wages, plus employer’s National Insurance contributions and the minimum employer pension contribution of 3% of qualifying wages required under automatic enrolment.

These amounts will only cover the automatic enrolment minimum.

In the interests of simplicity, the government has aligned the grants with the 3% minimum contribution required by employers under automatic enrolment.

If employers contribute above this amount and will continue to do this for furloughed staff, they won’t be able to claim for these additional contributions.

From August 2020 furloughed workers can return to work part-time with employers being asked to contribute towards the salaries of their furloughed staff.

At the moment, there are no details about what percentage of salaries employers will be asked to pay.

Salaries of all furloughed workers, full- and part-time, will remain pensionable.

If you have any more questions on the coronavirus job retention scheme, or on anything else, please email our customer services team at

NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions.
Martin Woods,