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The Coronavirus Job Retention Scheme is changing...

To enable the introduction of part time furloughing, and support those already furloughed back to work, claims under CJRS from July onwards will be restricted to employers currently using the scheme and previously furloughed employees.


The scheme will therefore close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June.


From 1 July, employers will be able to agree any working arrangements with previously furloughed employees.

When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of one week.


So, what do we know?


From 1 July, employers will be given the flexibility to bring furloughed employees back part time. Businesses will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them - and will be responsible for paying their wages while in work.


From August, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the government will continue to pay 80% of people’s salaries. In the following months, businesses will be asked to contribute a modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.


The scheme updates mean that the following will apply for the period people are furloughed:


June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.


August:The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.


September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.


October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

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