We have all heard about the imminent changes to the Coronavirus Job Retention Scheme (“CJRS”).
Here is an easy to follow guide setting out the financial changes over the coming months.
The important point to note is that employees who are “on furlough” will continue to be entitled to receive 80% of their wages (up to £2,500 per month). What is changing is who will be paying for this.
July August September October
|CJRS contribution – wages||80% (up to £2,500)||80% (up to £2,500)||70% (up to £2,187.60)||60% (up to £21,875.00)|
|CJRS contribution – Employer’s contribution pension and NIC||Yes||No||No||No|
|Employer contribution – wages||
||10% up to £312.50||20% up to £625|
|Employer contribution – pension and NIC||No||Yes||Yes||Yes|
Employers can still choose to top up employee wages above the 80% total (and £2,500 cap) should they wish of course.
Despite the above increased contributions employers will now be able to ask staff to work for them on a part-time basis whilst also being on furlough. Employers will have to pay the employees for any hours worked and the wage cap above will need to be calculated on a pro-rate basis.
For any assistance with this or any other employment related query, please contact our Head of Employment, Ilinca Mardarescu