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It's the furlough countdown


From July, employers will be asked to contribute increasing amounts towards an employee’s furlough pay as the Coronavirus Job Retention Scheme (CJRS) enters the home straight.

Employees will continue to receive 80% of wages up to a cap of £2,500 per month. Payment of furloughed employee wages will be shared between the Government and the employer. The Government will cover costs for hours not worked by the employee (claimed under the CJRS) up-to 70% of wages (up-to a cap of £2187.50, proportional to the hours not worked).


Employers will cover the pay due for any and all hours the employee works and will be required to contribute the following for the hours not worked by the employee:

· 10% of wages up-to a cap of £312.50 and the employer pension and NICs.


In August and September, furloughed employees will continue to receive 80% of wages up to a cap of £2,500 per month. Payment of furloughed employee wages will continue to be shared between the Government and the employer as follows. The Government will cover costs for hours not worked by the employee (claimed under the CJRS) up-to 60% of wages (up-to a cap of £1875, proportional to the hours not worked).


Employers will cover the pay due for any and all hours the employee works and will be required to contribute the following for the hours not worked by the employee:

· 20% of wages up-to a cap of £625 and the employer pension and NICs.


As the scheme winds down business owners will understandably be assessing options. It is vital appropriate and relevant advice is sought at the earliest opportunity.

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