What is the current status of the Coronavirus Job Retention Scheme (CJRS)?
Flexible furlough and changes to government and employer contributions
- Since 1 August, employees can be “flexibly furloughed,” meaning they can come back to work for any amount of time and any work pattern, and employers can still claim for the hours not worked.
- The CJRS is closed to new entrants, and only employees who started furlough on or before 10 June may be furloughed again under the CJRS.
- Since 1 September, CJRS have been reduced from 80% of wages (up to a cap of £2,500 per month) to 70% of wages (up to a cap of £2,187.50) for the hours that employees are furloughed. Employers must (1) pay employer national insurance contributions (NICs) and pension contributions and (2) top up wages to 80% (up to a cap of £2,500) for the hours that employees are furloughed.
- From 1 October, CJRS grants will be further reduced to cover 60% of wages (up to a cap of £1,875) for the hours that employees are furloughed. Again, employers must (1) pay employer NICs and pension contributions and (2) top up wages to 80% (up to a cap of £2,500) for the hours that employees are furloughed.
- Employers can still top up wages above the 80%/£2,500 cap for furloughed hours. Employers must pay employees for hours worked as usual.
- The CJRS will close on 31 October.
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