Changes to the Coronavirus Job Retention Scheme (CIRS)

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Changes to the Coronavirus Job Retention Scheme have been announced.

Employers will be asked to cover National Insurance and employer pension contributions in August.

The Chancellor Rishi Sunak said that the furlough scheme would continue as before in June and July, but employers will be asked to contributions in August.

By September, businesses will pay 10% of wages for furloughed staff, and in October 20%.

This means the subsidy will taper off from August, with businesses expected to pay a greater share of their staff salaries, starting with covering National Insurance and pension contributions.

From September the government will cover only 70% of salaries, to a cap of £2,190 and from October it will pay 60%, to a cap of £1,875.

Employers will make up the shortfall to get salaries back to 80% of pre-Covid lockdown levels.

After that, the scheme will close.

Flexible Furloughing of employees

From July 1, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked.

When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.

The scheme will close to new entrants from June 30.

From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to June 30.

This means that the final date by which an employer can furlough an employee for the first time will be June 10, in order for the current three-week furlough period to be completed by June 30.

Employers will have until July 31 to make any claims in respect of the period to 30 June.

For further information on the furlough scheme please contact our payroll manger Lisa McLeod on 01244 343504.