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CORONAVIRUS JOB RETENTION SCHEME – FLEXIBLE FURLOUGH FROM 1 JULY

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The Coronavirus Job Retention Scheme (CJRS) can become more flexible from 1 July meaning that employees can be brought back to work part time and furloughed for the remainder of the days they would work.  You can still keep employees on full furlough if needed.

The furlough scheme closed to new entrants from 30 June.  Going forward the employer can only furlough an employee (either fully or part time) if they have previously been furloughed for a complete 3 weeks’ period prior to 30 June.

For those employees that you wish to bring back under the new flexible furloughing employers will need to report and claim for a minimum period of a week.  During this time the Government will continue to contribute up to 80% of pay, subject to a cap of £2,500.

From August the scheme will slowly be reduced over a period of a few months.  The Government will continue to pay up to 80% of pay, subject to the £2,500 cap but the employer will need to begin paying the national insurance and pension contributions.

As of September the Government contribution will reduce to 70% with a cap of £2,187.50.  The employer will need to pay the additional 10% plus the national insurance and pension contributions.  The percentage the Government will pay from October will be 60%, subject to a cap of £1,875.  Again the employer will need to make up the additional 20% together with national insurance and pension contributions.

If you need any help and support with your pay roll then call us on 0113 2864486

Source : GOV.UK

Photo by Annie Spratt on Unsplash

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