Flexible Furlough in more detail

The government have this afternoon released a paper and press release about the changes to the Coronavirus Job Retention Scheme (furlough) which starts today, setting out the changes in more detail.

You can find the full details here: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme

Below are the key points:-

  • The Coronavirus Job Retention Scheme will close on 31 October 2020.
  • From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.
  • There are no changes to grant levels in June, and 31 July is the last that you can submit claims for periods ending on or before 30 June.
  • For June and July, the government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.
  • For August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay Employer National Insurance and pension contributions for the hours the employee is on furlough.
  • For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay Employer National Insurance and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
  • For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay Employer National Insurance and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

This is the link to the press release: https://www.gov.uk/government/news/flexible-furlough-scheme-starts-today?utm_source=ce4c7158-66cd-4df7-81f3-78de143a9580&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

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