Coronavirus Job Retention Scheme changes from September

From today (September 1) there will be changes to the way that the Coronavirus Job Retention Scheme (CJRS) makes payments to employers.

What is changing?

For the period from 1 September to 30 September the schemes grant will reduce from the previous 80% down to 70% of employees’ pay up to a cap of £2,187.50 for hours furloughed employees do not work.

Employers will need pay the remaining 10% to ensure that furloughed workers still receive a minimum of 80% of their usual wages for hours they do not work, up to a cap of £2,500 per month.

Employers will not be able to reclaim employer NICs and minimum pension contributions.

Further changes following in October

From 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 ER NICs 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

Government contribution: employer NICs and pension contributionsNoNoNo
Government contribution: wages80% up to £2,50070% up to £2,187.5070% up to £1,875
Employer contribution: employer NICs and pension contributionsYesYesYes
Employer contribution: wages10% up to £312.5020% up to £625
Employee receives80% up to £2,500 per month80% up to £2,500 per month80% up to £2,500 per month

If you require any assistance with a CJRS claim or any other tax matter then please get in touch.