July 1st, 2021, marks the first date from which the Coronavirus Job Retention Scheme (CJRS) starts to wind down, prior to ending on 30 September 2021.
Currently, the CJRS contributes to employers who have furloughed employees (on either a full or part-time basis) 80% of their salary, up to the value of £2,500 per month. This is pro-rated for employees who are taking advantage of flexi-furlough options, working a percentage of their usual working hours.
Under the current scheme, employers can choose at their discretion whether to top up employees’ wages above the 80% total and £2,500 cap for the hours not worked at their own expense.
The next phase of the CJRS runs from 1-31 July 2021 with employees still receiving the same amount capped at £2,500, but the government grant will drop to 70% contribution of salary for unworked hours. The employer will then be liable to pay 10%, plus employer National Insurance Contributions (NICs) and pension contributions on this amount.
Starting 1 August to 30 September 2021, employees will still receive the same amount capped at £2,500, but the government grant will drop to 60% contribution of salary for unworked hours. The employer will then be liable to pay 20%, plus employer National Insurance Contributions (NICs) and pension contributions on this amount.
As of 1 October 2021 no further extensions of the CJRS have been made, meaning as of this date no grant will be available to employers for employees and the furlough scheme will come to an end.
If you would like to discuss any points in this article further or are looking for legal advice relating to the Coronavirus Job Retention Scheme either as an employee or an employer, please contact Spire Solicitors LLP Employment team on 01603 677077.
