The next wave of changes to the Coronavirus Job Retention Scheme will begin on Sunday, August 1 as part of the UK Government’s plan to phase out its financial support by the end of September.
The wind down in the furlough scheme comes after tens of thousands of businesses were given the green light to trade again as lockdown restrictions were eased further. From the beginning of July, employers across the UK started making compulsory contributions to furloughed employees’ wages after The Treasury’s pay participation dropped from 80% to 70%.
The changes in August means workers on furlough will receive 60% of their pay from the UK Government (up to £2,187.50) and 20% (up to £625) plus pension and National Insurance contributions from their employer.
The changes next month will be the same for September. Below is a handy guide to help employers and employees understand the payment rules.
July
UK Government contribution : 70%, up to £2,187.50
Employer contribution: 10%, up to £312.50, National Insurance and pension contributions
Minimum amount furloughed employee receives: 80% of regular salary, up to £2,500
August
UK Government contribution: 60%, up to £1,875
Employer contribution: 20%, up to £625, National Insurance and pension contributions
Minimum amount furloughed employee receives: 80% of regular salary, up to £2,500
September
UK Government contribution: 60%, up to £1,875
Employer contribution: 20%, up to £625, National Insurance and pension contributions
Minimum furloughed employee receives : 80% of regular salary, up to £2,500
To help employers across the country understand the changes to the Coronavirus Job Retention Scheme, HMRC have uploaded a pre-recorded webinar, which you can view online here.
The 48-minute video covers:
- the extension of the scheme
- how employers will be affected
- flexible furloughing
- key dates
- support available
HMRC is also running live webinar sessions on the changes to the furlough scheme for employers and employees on Thursday, July 29 at 2.45pm and Tuesday, August 3 at 11.45am. Both sessions last one hour - you can register to join in here.
To check if you can claim employees wages through the Coronavirus Job Retention Scheme, visit the GOV.UK website here.
To check which employees can be put on furlough, visit the GOV.Uk dedicated website here.
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