Summary
Description
The Government has announced that the Coronavirus Job Retention Scheme (CJRS) will change over the coming months, with further guidance announced by HMRC on flexible furloughing and how employers should calculate claims.
Resolution
Here is a summary of the key changes so far:
June
CJRS continued to fund the hours not worked up to 80% of wages to a cap of £2,500. The scheme closed to new entrants on 30 June. From that date onwards, employers could only furlough employees that they had furloughed for a full three week period prior to 30 June.
On 30 June Phase 1 of the CJRS ended.
July
Check you're using the latest Job Retention Scheme Module so you can make a claim in Phase 2.
Phase 2 of the CJRS began 1 July. This means employers could bring back to work employees previously furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked.
CJRS will continue to fund the hours not worked up to 80% of wages to a cap of £2,500.
In phase 2 the minimum claim period is 7 days unless the number of remaining days in the pay period within the calendar month is less than 7. A claim period is limited to calendar months, with no overlapping months.
August
From August CJRS continues to fund 80% up to a cap of £2,500 and employers are required to pay employer NICs and pension costs for the hours not worked, as well as for the hours worked, CJRS no longer funds the employer on-cost element.
September
From September CJRS claims will be for 70% of wages, to a cap of £2,187.50, for the hours that the employee does not work. The employer will pay 10% to make up the shortfall to 80% to a cap of £2,500 plus the employer on-costs for NIC and pension.
October
From October CJRS will fund 60% of wages to a cap of £1,875 for the hours the employee is not required to work, the employer will be expected to contribute 20% to make up the shortfall to 80% to a cap of £2,500 plus the on-costs of employer NIC and pension. The cap will be proportional to the hours not worked.
Job Retention Bonus
As the furlough scheme winds down flexibly and gradually until the end of October. To help with the gradual ending of furlough the chancellor has announced a Job Retention Bonus to encourage companies to retain furloughed staff.
A one-off £1000 payment will be made to employers for every furloughed employee retained by the end of January 2021. It will apply to workers earning over £520 per month, UK wide. Read more >
Timeline
To help you understand the changes and when they happen, we've created a handy timeline.
If you want to know more detailed information about the changes. Read more >
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