The next step

To further information on the changes to the CJRS

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Employer furlough contributions

Increased contributions. The Chancellor announced that the Coronavirus Job Retention Scheme (CJRS) will be tapered off, eventually closing on 31 October 2020 . From 1 August 2020 employer contributions will start to be phased in.

Tip. Until the end of July you will still be able to claim up to 80% of a furloughed employee’s salary, capped at £2,500 gross p.m., plus the employers’ NI and the minimum auto-employment pension contribution.

Countdown. After that, the following changes will come into effect:

• from 1 August you will still be able to claim up to 80% of the furloughed employee’s salary, capped at £2,500 a month. However, you must start paying the employers’ NI and minimum auto-enrolment pension contributions due on the employee’s salary
• from 1 September only 70% of the furloughed employee’s salary will be claimable from the government, i.e. up to £2,187.50 p.m - you will have to contribute the other 10% (or 30% if you’re paying full pay)
• from 1 October the government’s contribution will be reduced again, this time to 60%, i.e. a maximum of £1,875 p.m. You’ll have to pay the other 20% of furlough pay (or 40% if you’re paying full pay).

No new entrants. From 30 June, you will only be able to furlough those employees who you previously furloughed for a minimum three-week period. You will not be able to furlough any staff on any type of arrangement if they weren’t furloughed prior to this date, i.e. it will be closed to new entrants.

Tip. The government will be setting out full details of its flexible furlough scheme in its online guidance (see The next step ). We will be reporting on this in our next issue.

For further information on the changes to the CJRS, visit http://tipsandadvice-personnel.co.uk/download (PS 22.13.01).