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. For periods in July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.
Employers will need to continue to pay furloughed employees at least 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 themselves. Employers can also top up wages above the 80% if they choose, but they are not obliged to do so. Employers must continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from their own funds.
CJRS eligibility from May: For periods from 1 May 2021 onwards, employers will be able to claim for eligible employees who were employed by them and on their PAYE payroll on 2 March 2021. This means the employer must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying them of earnings for that employee.
The employer and their employees do not need to have benefitted from the scheme before to make a claim, as long as the eligibility criteria are met.
More information on the extension to the scheme and the support available can be found in the Job Retention Scheme section on GOV.UK.