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|
wages for hours not worked
|70% up to £2,187.50||60% up to £1,875||60% up to £1,875|
employer National Insurance contributions and pension contributions
|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]