On Friday 29th May the Chancellor Rishi Sunak announced important updates to the Coronavirus Job Retention Scheme

In June and July, the government will continue paying 80% of furloughed people’s wages, up to the maximum cap of £2,500.

From July flexibility will be introduced, one month earlier than planned, supporting part-time work.

For employers who want to place new employees on the current scheme, they will need to do so by 10 June to allow time to complete the minimum furlough period.

From 1st August the government will continue to pay 80% of employee’s wages and employers will only be asked to cover national insurance and employer pension contributions.

In September the government will pay 70% of furloughed people’s salaries, with employers contributing 10% to ensure that staff continue to receive 80% of their salary.

Employers will also pay national insurance and employer pension contributions.

In the final month of October, the government will contribute 60% of employee’s wages with employers contributing 20%.

Employers will also pay national insurance and employer pension contributions.

The government have also put in place a flexible furlough scheme allowing employers to bring furloughed staff back on a part-time basis from 1st July, a month earlier than originally planned.

Full details of the scheme changes are due to be published very soon.

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