Currently employers can claim under the CJRS for 80% of the employee’s usual wage (up to £2,500 per month) plus the employer’s NIC on those wages and the employer’s minimum contributions to the workplace pension, but this is about to change from:
- 1 July – employees can be furloughed for flexible periods with no minimum.
- 1 August – CJRS will not cover the employer’s NIC or pension contributions.
- 1 September – CJRS will cover 70% of usual wages capped at £2,187.50 per month, but no employer’s NIC or pension contributions.
- 1 October – CJRS will cover 60% of usual wages capped at £1,875 per month, but no employer’s NIC or pension contributions.
- 1 November – no further support will be paid for furlough periods after 31 October.
Employers must continue to pay their employees at least 80% of their usual pay for furlough periods. For periods the employee is working they must be paid in line with their agreed employment contract, at rates above or equal to the National Minimum wage or National Living Wage, according to their age.
Employers must not change the terms and conditions of employment contracts to reduce furlough pay to the amount of CJRS grant.
To be included in a CJRS claim for furlough periods from 1 July onwards, the employee must have been furloughed for a period of at least three weeks at some point between 1 March and 30 June 2020, with a few exceptions. Claims for furlough periods to 30 June must reach HMRC by 31 July.
An employer won’t be able to use the CJRS from 1 July if they have not already made CJRS claims for their employees for earlier periods. Also the maximum number of employees the employer can claim for in July and beyond is limited to the maximum number of employees included in claims for periods up to 30 June 2020.
A good deal of record keeping will also be required to keep track of what hours each employee has worked, or been furloughed, within each pay period. For more detail follow the link below.
If you wish to speak to a member of our team regarding the changes to the furlough scheme from July, please contact us on 020 7330 0000.