The Chancellor, Rishi Sunak, has (once again) announced that the Coronavirus Job Retention Scheme (CJRS) will be extended. The CJRS had previously been extended to 30 April 2021 but will now remain available until 30 September 2021.
The provisions of the CJRS will continue as usual except that the level of grant available under the CJRS will be reduced from 1 July 2021.
Until 30 June 2021, the Government will subsidise up to 80% of an employee’s salary (capped at £2,500 (gross) per month) and the employer will continue to be responsible for pension and NI contributions.
From 1 July 2021, employers will be required to contribute towards the wages of furloughed employees (along with continuing to be responsible for pension and NI contributions) as follows:
- For July 2021, the Government will subsidise up to 70% of employee salaries up to £2,187.50 and employers will contribute 10% of wages up to £2,500 (gross) per month; and
- For August and September, the Government will subsidise up to 60% of employee salaries up to £1875 and employers will contribute 20% of wages up to £2,500 (gross) per month.
Employers can continue to top-up employee wages above 80% at their own expense.