The furlough scheme is scheduled to finish at the end of this month - after supporting millions of jobs since the start of the pandemic.
Available support through the Coronavirus Job Retention Programme has been gradually lifted each month since it was initially introduced in Spring 2020.
When the furlough scheme was initially introduced, the government funded 80 per cent of employee's wages who couldn't work, which was up to £2,500 a month.
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This was reduced from the beginning of July, when employers were required to make a 10 per cent contribution to salary payments with the Government paying 70 per cent.
The government's contribution reduced again to 60 per cent in August with employers paying 20 per cent of salaries.
That arrangement has continued this month but support ends on September 30. Here's a look at the current regulations and how they affect furloughed workers.
Furlough rules for September
The Coronavirus Job Retention Scheme has been extended until 30 September 2021. For claims relating to August and September 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.
For all claims from 1 July 2021, employers must top up their employees’ wages to make sure they receive 80% of their wages (up to £2,500) for the hours they are on furlough. The caps are proportional to the hours not worked.
The Coronavirus Job Retention Scheme will be ending on 30 September 2021. Claims for September must be submitted by 14 October 2021 and any amendments must be made by 28 October 2021.
In short:
- 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
