Coronavirus Job Retention Scheme (CJRS) extended

The Coronavirus Job Retention Scheme (CJRS) is a temporary government backed scheme designed to provide emergency financial support to employers whose operations have been severely affected by Coronavirus (COVID-19).

The CJRS now runs from 1 March 2020 until 31 October 2020.

The first phase, which covers the period 1 March 2020 to 30 June 2020, enables employers to obtain a grant from the government to cover:

• 80% of ‘furloughed workers’ wages;
• To a maximum of £2,500 per employee per month; and
• Claims must be made by 31 July.

From 1 July 2020, the scheme is changing to enable more flexibility for both employers and employees. Employees who were previously furloughed will be able to return to work on a flexible part-time basis. This means employers will pay employees as normal for hours worked whilst being able to claim a CJRS grant for furloughed hours.

From 1 August 2020, the level of government support will be gradually reduced, with a corresponding increase in the employer contribution.

August 2020

• The government will continue to pay a grant of 80% of wages up to a maximum of £2,500; and
• Employers will be required to pay the Employer National Insurance contributions (NICs) and pension contributions.

September 2020

• The government will pay a grant of 70% of wages up to a maximum of £2,187.50 for the hours the employee does not work;
• Employers will be required to pay the Employer NICs and pension contributions; and
• Employers will be required to pay 10% of wages to make up 80% of the total to a maximum of £2,500 paid to the employee.

October 2020

• The government will pay a grant of 60% of wages up to a maximum of £1,875 for the hours the employee does not work;
• Employers will be required to pay the Employer NICs and pension contributions; and
• Employers will be required to pay 20% of wages to make up 80% of the total to a maximum of £2,500 paid to the employee.

Further guidance on the Coronavirus Job Retention Scheme, specifically details of the new, flexible scheme from 1 July 2020, how to determine furloughed employees’ pay and calculating a claim can be found in our CJRS Factsheets below.