Mel’s COVID-19 Update: 6th July 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. Please note that this update is correct as of the date of sending (6th July 2020).
I thought I'd send another update out just to re-cap on where we are in relation to the Furlough scheme now as some of the details are quite involved and I want all clients to be fully aware of the facts.
Firstly, the Coronavirus Job Retention Scheme will close on 31 October 2020.
From 1 July employers can bring furloughed employees back to work for any amount of time and any shift pattern and still claim the CJRS grant for hours not worked (flexible furlough).
From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2500 per month for the time they are furloughed.
Wage caps are proportional to the hours an employee is furloughed. So, for example, an employee is entitled to 60% of the £2500 cap if they are placed on furlough for 60% of their usual hours.
For June and July the government will pay 80% of the wages up to the cap of £2500 for the hours the employee is on furlough, as well as employers NIC and pension contributions for the hours the employee is on furlough.
For August the government will pay 80% of wages up to a cap of £2500 for the hours the employee is on furlough and the employers will pay employer NIC and pension contributions.
For September, the government will pay 70% of wages up to a cap of £2187.50 for the hours the employee is on furlough. Employers will pay the Employers NIC and pension contributions and top up the employees wages up to the 80% up to a cap of £2500 for the time they are furloughed.
For October, it is per September but the government contribution drops to 60% ...
Employers can top up above the 80% if they wish of hours not worked but if the employee has worked the hours then the employer must pay the wages due.
Stay safe and I hope we meet in person again soon!