Changes to the Coronavirus Job Retention Scheme on 1 September 2020

From 1 September 2020, the government will pay 70% of wages up to a cap of £2,187.50 per months for the hours the employees are on furlough.

Employers will still need to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves.

The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in September, employers are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).

Employers will continue to have to pay furloughed employees’ National Insurance (NI) and pension contributions from their own funds.

Posted on Aug 17, 2020.

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