Changes to CJRS from 1 September

furlough

 As more businesses start to reopen, the coronavirus job retention scheme (CJRS) has slowly started to ease out.

 

The scheme, which was launched earlier this year, allowed employers with staff on a PAYE scheme to furlough workers, with the Government paying 80% of their pay, employer national insurance and pension contributions.

 

From 1 September, the Government will pay 70% of furloughed employees pay.

 

Throughout August, CJRS continued to pay 80% of wages up to £2,500 for the hours furloughed employees were contracted for, but employers were required to cover national insurance and pension contributions.

 

During September, the grant will decrease to 70% of wages up to a cap of £2,187.50 for the hours employees are on furlough.

 

The grant is due to decrease to 60% in October up to a wage cap of £1,875 for the hours furloughed employees are contracted for.

 

This means higher costs for employers as they now have to pay pension contributions, national insurance and top up employee’s salaries to ensure a guaranteed 80% of their monthly wage, up to a cap of £2,500.

 

Go to https://www.gov.uk/government/collections/coronavirus-job-retention-scheme for more information on CJRS.