HM Treasury has confirmed the Chancellor’s announcement setting out changes to the Coronavirus Job Retention Scheme. From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. Individual firms will decide the hours and shift patterns, so that they can utilise the best approach for them and will be responsible for paying employees’ wages while in work. In June and July, the Government will continue to pay 80% of people’s salaries. From August 2020, to 31 October (when the scheme ends), the level of Government grant provided will be slowly tapered to reflect that people will be returning to work and businesses will be asked to contribute a share as follows:
- August: The Government will pay 80% of wages up to a cap of £2,500. Employers will pay Employer (ER) NICs and pension contributions.
- September: The Government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
- October: The Government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
Original article ‘Chancellor announces tapering of Coronavirus Job Retention Scheme’ Written by Makbool Javaid Published by The HR Director
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