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Mel’s COVID-19 Update: 5th June 2020
During COVID-19 I want to ensure that everyone is as up to date as possible with regards to Government changes and support that impacts businesses.
As we head towards the proposed final stage of the job retention scheme, following the extension from the UK government there have been a few changes made to both the eligibility and provision of funding.
As at time of this update (5th June 2020) here are the summary of the changes:
- The JRS will continue through to October 2020 with employees on furlough continuing to receive 80% of their salary up to the £2500 monthly cap.
- As of August employers will be required to pay the employers NIC and auto enrollment pension contributions towards the furlough amount.
- In September, employers will pay the NIC costs and pension costs as well as begin contributing 10% of the furloughed pay, the government will scale down their contribution to be 70%. This means the maximum claim from the government will drop from £2500 per month to £2187.50 per month. This drops further in October where the government contribution drops to 60% so a max of £1875 per employee per month.
- There will be a more flexible approach to furloughed workers from 1 July allowing some to return to work on a part-time basis (there is no official guidance on how this will work as yet). Basically the employer will then pay the employee for the days worked and can claim relief for the days furloughed in a week.
- VERY IMPORTANTLY - the eligibility to claim is changing imminently. The last chance to register new furloughed employees as part of this scheme will be 30 June . This means if employers wishing to furlough new employees will need to have done so by 10 JUNE so that they can complete the minimum 3 week furlough period in time.
This is an ever changing situation so please keep a look out for my updates and read carefully. Please let me know if you have any questions and I can put you in contact with our payroll team.