Furlough Update – 04.03.2021

The HMRC/ UK Government has today updated its guidance to state that the Furlough Scheme (Coronavirus Job Retention Scheme -CJRS) will be extended until the end of September 2021. The Government has confirmed that it 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.

After this point, CJRS 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 however 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. You can also top up wages above the 80% if you wish, but this is not a requirement.

The employer must however continue to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay from your own funds.

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