Furlough... the road ahead

First published: 6/2/20

Last Modified: 8/4/20, 7:22 PM


Chancellor, Rishi Sunak, has announced details of the extension to the Coronavirus Job Retention Scheme. Mapping out the road to bringing employees back from furlough

From 1 July, there will be more flexibility, enabling employers to bring employees back part time, whilst still receiving an 80% grant for time not worked. Employers will decide the hours and shift patterns their employees will work and will be responsible for paying the wages, in full, while working.

From 1 August, the government will continue to pay 80% of wages up to a cap of £2,500, but employers will pay employers NI and pension contributions.

From 1 September, the government will pay 70% of wages, up to a cap of £2187.50 for hours not work. Employers will pay employer NI, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2500

From 1 October, the government will pay 60% of wages up to a cap of £1875 for hours not worked. Employers will pay employer NI, pension and 20% of wages to make up 80% of the total up to cap of £2500

The scheme will close to new entrants from 30 June. Meaning the final day an employee can be put on furlough, for the first time, will be 10 June

Get in touch to talk over your options

info@chanonrypayroll.co.uk

07734322909


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