From 1st July 2021 the level of grant paid through the Coronavirus Job Retention Scheme will reduce. Instead employers will need to contribute towards the cost of their furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
|June 21||July 21||Aug 21||Sept 21|
|Govt contribution – |
wages for hours not
up to £2,500
|70% up to £2,187.50||60% up to £1,875||60% up to £1,875|
|Employer contributes – wages for hours |
|None||10% up to £312.50||20% up to £625||20% up to £625|
Employers can choose to top-up the employees’ wages, so they receive more than 80% in total.
In addition employers may wish to agree to employees taking paid holidays during the furlough period. The advantage to the employer is that employees are using some of the holidays they are accruing whilst on furlough, rather than the employee having a substantial number of holiday-days once they return from furlough. The advantage to the employee is that they must be paid 100% of their normal salary for holidays – ie. the employer must top up the Government’s contribution, so the employee receives 100%.
If you have any queries regarding the Job Retention Scheme, please contact Jackie or Siobhan on 01625 524127.