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Furlough Changes – New changes come into effect from 1 July 2021

Client Support
Hannah Dumenil
01/07/2021
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To maintain eligibility for the Coronavirus Job Retention Scheme (CJRS), from 1 July 2021 you must continue to pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for each furloughed employee.

However, as of 1 July 2021 the government contribution will decrease to just 70% in July, before dropping further to 60% for both August and September, with wage caps proportional to the hours not worked (as seen in the table below).

July 2021 August 2021 September 2021
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

As always you can continue to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.


If you require any support with the furlough calculations please do not hesitate to contact Hannah Dumenil on [email protected]

 

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