Further changes to the Coronavirus Job Retention Scheme (CJRS) come into force from 1 October. From that date, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.
Employers must continue to pay furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. They will need to fund the difference between this and the CJRS grant themselves.
The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in October, employers are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap). Employers must still pay their employees at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours they’d need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion themselves.
Employers will also continue to pay furloughed employees’ National Insurance and pension contributions from their own funds.
For help with calculations, search ‘Calculate how much you can claim using the Coronavirus Job Retention Scheme’ on gov.uk.
- The government announced this week that the CJRS is to be replaced by the Jobs Support Scheme.