skip to navigationskip to main content

Call: 0148 345 3429

Job retention Scheme update

While the Government is currently paying 80% of workers’ salaries up to £2500 a month for some 8.4 million workers under its furlough scheme, it has made clear that it cannot continue to provide this unprecedented level of support for an indefinite period.

Now the Chancellor has announced that, although the Coronavirus Job Retention Scheme (CJRS) is set to run until October, employers will be asked to begin to pay a share of the wages.

In August, they will be expected to meet National Insurance (NI) and pension contributions while the Government continues to meet the 80% of salaries. For the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.

In September, the Government percentage will be reduced to 70% (a cap of £2187.50) and in October to 60% (a cap of £1875) with employers expected to make up the 10% and then 20% difference.

Employers will also be expected to pay 100% of the NI and pension contributions.

For further information please read our newsletter in Practice news.

INDUSTRY NEWS
AND BLOG

While the Government is currently paying 80% of workers’ salaries up to £2500 a month for some 8.4 million workers under its furlough scheme, it has made clear that it cannot continue to provide this unprecedented lev...

Running a business can be tricky at the best of times. With so much to do, organise and look over, sometimes it can feel like you are drowning in paperwork and to-do lists. As a small business, growth and expansion are e...

As the saying goes, “nothing’s as certain as death and taxes”. Whilst all of us in working life are guaranteed to be taxed, there are always changes to tax rates, thresholds and wages that affect businesses and tho...

SHOW ALL