In January 2021 we reported that although the Government had extended the Coronavirus Job Retention Scheme (CJRS) (the ‘furlough’ scheme) until 30 April 2021, there were already rumours circulating that the scheme would be extended even further. Those rumours have now come to pass as, on 3 March 2021, the Government officially extended the furlough scheme until 30 September 2021.
For now, there are no changes to the particulars of the payments under the CJRS. This means that, at present, the Government will continue to pay 80% of a furloughed employee’s salary for hours not worked, up to a maximum of £2,500 per month.
From 1 July 2021, furloughed employees will continue to receive 80% of their salary, up to a maximum of £2,500, but the level of the Government contribution will be reduced, and the level of the employer’s contribution will be increased. The level of contribution will be divided as follows:
- in July 2021, the Government will pay 70% of a furloughed employee’s salary, up to a maximum of £2,187.50 per month, and employers will pay 10% of a furloughed employee’s salary, up to a maximum of £312.50 per month; and
- in August 2021 and September 2021, the Government will pay 60% of a furloughed employee’s salary, up to a maximum of £1,875 per month, and employers will pay 20% of a furloughed employee’s salary, up to a maximum of £625 per month.
At present, there are no known changes to any other aspects of the scheme. Employers will continue to pay all employer National Insurance and pension contributions for the entirety of the scheme, and employers have discretion to top up the employee’s pay to 100% should they wish to do so.