Ahead of the government’s detailed guidance tomorrow on changes to the furlough scheme under the Coronavirus Job Retention Scheme( CJRS), here is what we know so far.
If you intended to furlough someone for the first time, they had to start their furlough period today at the latest, to complete the minimum 3-week period by 30 June. The exception is employees on statutory parental leave. They may be furloughed after 10 June for the first time, but only if they work for an employer who has previously furloughed employees.
Current Coronavirus Job Retention Scheme closes to employees who have not been furloughed for a full three-week period before 30 June
From 1 July
Employers can bring back previously furloughed employees part time. Employers will pay their employees’ wages for the time they’re in work and apply for a CJRS grant to cover any of the normal hours the employees are still furloughed for.
Importantly, the maximum number of employees you can claim CJRS for in any period cannot be higher than the maximum number you have claimed for in a previous period.
Employers will have until 31 July to claim for any furlough periods up until 30 June.
From 1 August
You will begin to contribute towards the wage costs of furloughed employees until the scheme ends on 31 October as follows:
- August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay Employer National Insurance Contributions (ER NICs) and pension contributions
- 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
- 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
We will issue further guidance as we receive it. We have been dealing with a significant number of furlough claims for our clients and will continue to support them in understanding the forthcoming changes and processing their claims.
If you need our help, please contact us.