Coronavirus – Changes to the Job Retention Scheme

Coronavirus – Changes to the Job Retention Scheme

From 1‌‌ October, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.

What you need to do from 1‌‌ October 2020

Continue to pay furloughed employees at least 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 October, employers are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap).

Employers must still pay their employees at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours they’d need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion themselves.

You will also continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.

Source: HMRC ‘Help and Support’ advice email