Upcoming Changes to the Coronavirus Job Retention Scheme (CJRS).
Following on from our previous communications, we would like to remind you of the upcoming changes to the Coronavirus Job Retention Scheme (CJRS).
Over the next two months, the changes to the CJRS will be as follows –
- For September, the government will pay 70% of wages for the hours that the employee is on furlough (this is subject to a cap of £2,187.50). The CJRS now bears more cost for employers, who will have to pay NI contributions and employer pension contributions in addition to 10% of employee wages. The further 10% is to make up 80% of the employee’s total wage (up to the cap of £2,500).
- For October, the government will reduce this further, meaning the government will pay 60% of wages for the hours that the employee is on furlough (up to the cap of £1,875). Employers are still required to pay employer NI contributions and employer pension contributions; however, employers will have to contribute 20% of wages to make up 80% of the employee’s total wage (up to the cap of £2,500).
Employers still have the option to top up employee wages above the 80% total and the £2,500 at their own discretion and expense if they wish to do so. Employers will still have to pay their employees for the hours that they have worked.
After the 31st of October, the government contributions are set to finish and the CJRS will come to an end.