Back in March the Coronavirus Job Retention Scheme was announced, which meant UK employers could claim reimbursement from the Government of 80% of salaries (capped at £2,500pcm) for employees who:
- Were on payroll at 19 March 2020.
- Were asked to temporarily stop working due to the Covid19 pandemic.
The scheme ran in its original form to 30 June 2020, but monthly changes will be made from July 2020. *
July 2020 – Businesses can bring employees back part-time. Reimbursement can be claimed for 80% of the difference between the employees’ ‘usual’ hours and revised part-time hours.
August 2020 – The Government will continue to reimburse 80% of salaries for those on furlough but employer national insurance and pension contributions, which were previously covered by the Government, will no longer be reimbursed.
September 2020 – The reimbursement will be reduced to 70% (capped at £2,190pcm). Employers will still be required to pay employees a minimum of 80% of their salary so will need to cover additional 10%.
October 2020 – The amount reimbursed will be reduced to 60% (capped at £1,875pcm). Employers will still be required to pay their employees a minimum of 80% of their salary so will need to cover the additional 20%.
We all have differing opinions and many of us have questions about how we will be affected as either employers or employees but one thing we can all agree on is that we look forward to a return to some sort of normality as soon as possible!
- This scheme is only open to employers who furloughed employees before 10th June 2020 and claims for these employees for the period to 30th June must be made by 31st July 2020.