The Coronavirus Job Retention Scheme (CJRS), due to end in April, has been extended until the end of September.
Currently, under the CJRS, you can claim 80% of a furloughed employee’s salary up to the cap of £2,500 per month.
Your only cost is employers NI and pension contributions. However, from July onwards, the scheme will have some changes as follows:
- From July, you will have to contribute 10% of furlough pay. This means that you will be able to claim 70% of furlough pay but will have to pay your employee 80%.
- From August, this contribution increases to 20%. This means that you will be able to claim 60% of furlough pay and you must contribute 20% so your employee receives the 80% minimum.
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