UPDATE: Job Retention Scheme Payment

1st June 2020

The government confirmed recently that this scheme would be extended to October 2020. However, from August 2020 onwards employers will be required to start to contribute to the cost of this scheme.

The way the scheme will be funded will change each month from August onwards and may be summarised as follows:

August – Employers must start paying pension contributions and Employers National Insurance of furloughed staff.

September – In addition to the above, employers must also pay 10% of the wages of furloughed staff. The government will pay 70% of the monthly wage of a furloughed employee (capped at £2,190).

October – An employer must pay 20% of the wages of furloughed staff members. The government will pay 60% of the monthly wage of a furloughed employee (capped at £1,875)

Job Retention Scheme Part Time Employees

From July 2020 onwards, furloughed workers will be able to return to work on a part time basis. However, the employer will be paying the full employment costs for the period they work part time.

Employers will still be able to claim Job Retention Scheme payments for normal hours not worked by their employees. The minimum claim for furlough pay in this regard is one week per employee over the monthly claim period.

Job Retention Scheme Deadline

This scheme will close to new entrants on 30 June 2020. From 1 July 2020 onwards, an employer can only claim under this scheme for an employee who has been furloughed for the full three-week period prior to 30 June 2020.

This means the deadline for which an employer can furlough an employee for the first time will be 10 June 2020. This is to allow the three-week furlough period to be completed by 30 June 2020.

More details as to how these claims will work will be published in the middle of June.

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