A reminder that the amount the Government will pay of a furloughed employee’s wages is set to go down in September under the ongoing Coronavirus Job Retention Scheme (CJRS), with a further reduction scheduled for October.
From 1st September 2020, employers will be required to fund 10% of furloughed employees’ usual wages for the hours they do not work and continue to pay their National Insurance (NI) and pension contributions, as these will not be covered by future grants.
This table provided by GOV.UK illustrates how the CJRS support tapers off, before the scheme comes to an end on 31st October 2020:
| July | August | September | October | |
| Government contribution: employer NICs and pension contributions | Yes | No | No | No |
| Government contribution: wages | 80% up to £2500 | 80% up to £2500 | 70% up to £2187.50 | 60% up to £1875 |
| Employer contribution: employer NICs and pension contributions | No | Yes | Yes | Yes |
| Employer contribution: wages | – | – | 10% up to £312.50 | 20% up to £625 |
| Employee receives | 80% up to £2500 per month | 80% up to £2500 per month | 80% up to £2500 per month | 80% up to £2500 per month |
From 1st 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 the time they are furloughed.
Remember we are here to help and also have our HR consultant Julie Brewster (Julie@hrsupport4u.com) on hand to help with any queries you may have.
Stay safe and well
The Clear Vision Team