The furlough scheme (also known as the Coronavirus Job Retention Scheme) has been further extended until the 30th September 2021. Employees will continue to receive 80% of their salary for hours not worked until the scheme ends. The Government’s contribution will be tapered with employers contributing 10% in July, increasing to 20% in August and September. 

From 1 July the government contribution has been reduced:

  • From 1 July, the government will contribute 70% and employers will have to pay 10% for hours not worked as well as the National Insurance and pension contributions they are already paying.
  • In August and September, the government will pay 60% and employers 20% plus National Insurance and pension contributions.

Until September the furloughed employees will still continue to receive up to 80% of their pay for hours not worked. Flexible furlough will continue to apply so employees can receive their normal pay for any hours that they work and receive the grant for the remaining unworked hours.

For more information, visit changes to furlough scheme from 1st July 2021

If you would like to discuss this topic in more detail or would like more information, contact Ramshaw HR today.

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