Changes to the Coronavirus Job Retention Scheme

Important changes to the Coronavirus Job Retention Scheme

For those who have furloughed their employees, the Coronavirus Job Retention scheme closes on 31st October 2020. It is now too late to put someone on the furlough scheme for the first time (unless they are returning from family leave).

Employers had the option of bringing furloughed employees back to work from 1st July 2020 on any amount of time or shift-pattern whilst still claiming the grant for any hours that aren't worked. This allowed furloughed employees to retain their jobs whilst continuing to work on a part-time basis.

How is the grant changing?

Over the next few months, the government grant will be reduced each month.

In August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough. Employers will pay ER NICs and pension contributions for the hours the employee is on furlough.

In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and they will also have to top up employees' wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and continue to top up employees' wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

Although employers will have to pay their employees for any hours worked, they will also have the option of paying the additional wages above 80% at their own expense.

This table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.

changes-to-job-retention-scheme.jpg

Accessibility | Disclaimer | Terms of Business | Privacy | Help | Site map |

© 2020 Gibbons Mannington & Phipps LLP. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Gibbons Mannington & Phipps LLP, 20 Eversley Road, Bexhill-on-Sea, East Sussex TN40 1HE
Gibbons Mannington & Phipps LLP, 24 Landgate, Rye, East Sussex TN31 7LJ
Gibbons Mannington & Phipps LLP, 82 High Street, Tenterden, Kent TN30 6JG

GMP Audit Limited, 20 Eversley Road, Bexhill-on-Sea, East Sussex, TN40 1HE

QuickbooksSage