Furlough Scheme (Coronavirus Job Retention scheme) – update and recent changes Watch the following video for the the recent changes in furlough scheme. From 1 September HMRC will now pay 70% of usual wages up to a cap of £2,187.50 per month for the hours furloughed employees do not work.What you need to do now if you operate Furlough scheme?
- Continue to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves.
- The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in September, employers are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).
- Continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.