Coronavirus Furlough Scheme Wraps Up
The Coronavirus Job Retention Scheme (commonly know as furlough) is drawing to an end and will finish in October 2021. The final 3 months sees a change to the contributions from the government and employers.
As the scheme is phased out, the government reduces the amount it contributes each month. Consequently, the employer is expected to contribute the remaining amount. This is staggered throughout July, August and September. Our table below outlines what to expect from the government each month.
|Government contribution: Wages for hours not worked||70% up to £2,187.50||60% up to £1,875||60% up to £1,875|
|Employer contribution: employer National Insurance contributions and pension contributions||Yes||Yes||Yes|
|Employer contribution: wages for hours not worked||10% up to £312.50||20% up to £625||20% up to £625|
|For hours not worked employee receives||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
You can always continue to top up your employees’ wages above the cap of 80% or £2,500 at your discretion. Remember, furloughed employees retain all the usual rights to sick pay, maternity leave, annual leave, and redundancy payments.
If you need advice regarding furlough, or any other matter relating to your business, please don’t hesitate to get in touch.
You can find full information at HMRC.