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Reminder: Furlough changes

01 July 2021 | Cecily Donoghue

The Coronavirus Job Retention Scheme (CJRS) remains in place until 30 September 2021 but the level of government support will now gradually start reducing – from today.

1st July 2021

The first of those changes is due to take effect from today and employers will be required to contribute 10% of the 80% furlough pay for hours which are not worked.

The government contribution will therefore reduce to 70% of wages up to a cap of £2,187.50 per month.

1st August 2021

A further reduction takes effect in August reducing the government contribution to 60%.

The table below summarises the changes:

 

1st July

1st August to 30th September

Government contribution: wages for hours not worked

70% up to £2,187.50

60% up to £1,875

Employer contribution: employer National Insurance contributions and pension contributions

Yes

Yes

Employer contribution wages for hours not worked

10% up to £312.50

20% up to £625

For hours not worked employee receives

80% up to £2,500 per month

80% up to £2,500 per month

Throughout this period, employers are fully responsible for payment of any hours worked.

Contact our Employment lawyers in Bristol or London

If your business requires advice on furlough or the return to work, do get in touch with our Employment team today on 0117 906 9400 or email hello@gl.law

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

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