The Coronavirus Job Retention Scheme AKA Furloughwas extended and will now close on 31st October 2020.
So what changes are coming into effect?
From 1st July 2020, employers can bring furloughed employees back to work part time. This can be for any amount of time and any shift pattern, while still being able to claim the furlough grant for the hours not worked. The government will continue to pay employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough.
From 1st August 2020, the level of grant will gradually be reduced each month.To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed. As an employer, you can choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at your own expense if you wish. It is now for the employers to go back to paying the employees national insurance contributions and pension contributions.
Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours.
For 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 top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
For 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 top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
See the table below for a clear explanation:
(Viewing optimised on a computer)
To help all of our clients, we are claiming furlough for you at OUR cost as an investment to our clients and the economy. You shouldn’t need to worry about another expense right now.
If would like any further support or assistance, please get in touch with us at firstname.lastname@example.org or 020 8530 0720