HM Gov’s Coronavirus Job Retention Scheme (CJRS) has been extended until the end of October 2020 but with changes to the system. The last effective date for workers being put on furlough is 10 June.
The two big changes are the tapering of the financial support given to employers and the rise in their contributions.
Financial support taper
June and July: HM Gov continue to 80% of wages up to a cap of £2,500 plus employer NIC and pension contributions.
August: HM Gov still pays 80% of wages up to a cap of £2,500 but employers must pay employer NIC and pension contributions .
September: HM Gov pays 70% of wages up to a cap of £2,187.50. Employers pay employer NIC and pension contributions and also 10% of wages to make good the 80% total – up to a cap of £2,500.
October: The government pays 60% of wages up to a cap of £1,875. Employers pay employer NIC and pension contributions and now 20% of wages to make good the 80% total up- to a cap of £2,500.
Employers are still entitled to top up above those minimum figures.
This is to help businesses wean back employees on to the payroll after June. Part time or ‘flexible furloughing’ as it is called will allow employers and employees to agree to work part-time ( at their contracted full salary rate) and the Furlough Scheme will cover those days when employees are not working.
The matrix will become quite complex and detailed time sheets must be maintained. More detailed information about CJRS is expected on 12 June. For now, for further details on the existing CJRS system please see our old posts or for fuller details see HM Gov facts sheet at :-HMRC Fact Sheet