Important changes to the Coronavirus Job Retention Scheme funding from July 2021
At the start of the year the Government announced that the Coronavirus Job Retention Scheme (CJRS) would be extended until 30 September 2021.
The government contribution will remain at 80% (up to £2,500 per month) until 30 June 2021.
From 1 July 2021, the level of grant will be reduced and employers will be asked to contribute towards the cost of their furloughed employees’ wages. To be eligible for the grant they must continue to pay the furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
The table below shows the level of government contribution available in the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time.
| May | June | July | August | September | |
|---|---|---|---|---|---|
| Government contribution: wages for hours not worked | 80% up to £2,500 | 80% up to £2,500 | 70% up to £2,187.50 | 60% up to £1,875 | 60% up to £1,875 |
| Employer contribution: employer National Insurance contributions and pension contributions | Yes | Yes | Yes | Yes | Yes |
| Employer contribution: wages for hours not worked | No | No | 10% up to £312.50 | 20% up to £625 | 20% up to £625 |
| For hours not worked: employee receives | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month | 80% up to £2,500 per month |
Wage caps are proportional to the hours not worked.
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If you would like to discuss this further, please do not hesitate to get in touch with myself or your usual Johnston Carmichael adviser.
