Coronavirus Job Rentention Scheme (CJRS) Changes

The Coronavirus Job Retention Scheme (CJRS) has been invaluable to may employers in helping meet the cost of staff wages while businesses have been affected by Covid-19.

The scheme was due to end in June but the government recently announced an extension although there are some changes.

It is important to note that the furlough scheme will be closed to new entrants from 30 June and only employees who have completed 3 weeks furlough at this stage will be eligible going forward. This means that only employees who have been placed on furlough on or before Wednesday 10 June 2020 will be able to eligible.

The other important changes being introduced are summarised below:

  • From 1 July workers can be brought back on flexible working patterns and employers can claim for the proportion of the normal working hours the employee is not working
  • The Government will continue to pay 80% of salaries, up to £2,500 per month, until the end of July
  • From August employers will have to pay employer NIC and pension contributions
  • From September employers will have also have to pay 10% of wages to make up the 80% total, up to the £2,500 pm cap
  • From October employers will have to pay 20% of wages as well as employer NIC and pension contributions.
  • The scheme is to end at the end of October 2020.

The government is releasing further guidance on the flexible furlough scheme on 12 June 2020.

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