The Chancellor has announced the latest updates to the Coronavirus Job Retention Scheme (CJRS), including details of the furlough scheme and how the government will ask employers to start contributing.

Details of the most recent updates to the scheme include:

  • In June and July, the furlough scheme will continue as before, with no employer contribution required and 80% of furloughed employees’ monthly wages covered by the Government;
  • From August, the employer will be required to pay National Insurance and employer pension contributions;
  • From September employers will be required to start paying towards furloughed employees’ wages;
  • For September, the Government will pay 70% of the furlough grant, with employers contributing 10%;
  • For October, the Government will pay 60% of the furlough grant, with employers contributing 20%; and
  • The scheme will close at the end of October 2020.

The Government will also be introducing a new, more flexible furlough scheme. This revised scheme will now come into play from 1 July 2020, rather than the originally proposed date of 1 August 2020.

  • Employers will have the flexibility to decide on the right arrangements for them and their furloughed staff;
  • This will include the opportunity to bring staff back to work on a part-time basis, for example a staff member could come back to work for two days of the week, while the furlough scheme will continue to cover the other three working days;
  • As a result of this new scheme, the government will be closing the old scheme to new entrants on 30 June 2020; and
  • Employers wanting to place new employees on the flexible scheme will need to do so by 10 June 2020.

Further guidance on the updates to the CJRS will be made available as they are announced.

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