Extension to the Coronavirus Job Retention Scheme

4 Mar 2021 Eamonn McKee    Last updated: 4 Mar 2021

Image promoting the extension of the furlough scheme

The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021.

The UK Government will continue to pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, up to the end of June 2021.

From 1 July 2021, the level of grant will be reduced, and Employers will be asked to contribute towards the cost of furloughed employees’ wages. To be eligible for the grant Employers must continue to pay furloughed employees 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.

This means, for periods between July and September, Employers will need to fund the difference between this and the CJRS grants. Wages can also be toped up above the 80% if Employers wish to do so, but are not required to do so.

Employers must continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from your own funds.

The table below shows the level of government contribution available in the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time.

Wage caps are proportional to the hours not worked.

  May June July August September
Government contribution: wages for hours not worked 80% up to £2,500 80% up to £2,500 70% up to £2,187.50 60% up to £1,875 60% up to £1,875
Employer contribution: employer National Insurance contributions and pension contributions Yes Yes Yes Yes Yes
Employer contribution wages for hours not worked No No 10% up to £312.50 20% up to £625 20% up to £625
For hours not worked employee receives 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month

 

CJRS support webinars:

HMRC are holding support webinars on the CJRS scheme. The webinars provide an overview of the extension of the scheme, how employers will be affected, flexible furloughing, key dates and support available.

This live webinar is offered several times - select the date and time that works best for you.

 

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