It was announced in March’s budget that the Coronavirus Job Retention Scheme will be extended until the end of September 2021, with changes to the scheme from July 2021.
The UK Government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021.
From July, employees will still continue to received 80% of their salary for hours un worked, but the Coronavirus Job Retention Scheme grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50 and in August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.
Employers will need to continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. This means, for periods between July and September, employers will need to fund the difference between this and the CJRS grants themselves. Employers can also top up wages above the 80% if they wish, but they are not required to do so.
Employers must also continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from their own funds.