Further to our previous messages regarding furloughed staff we thought we should remind you that the level of the CJRS grant reduces from 1 September 2020. The Government’s contribution to wages will reduce to 70% of wages up to a cap of £2,187.50 for the hours a furloughed employee is on furlough.
Employees remain entitled to receive 80% of their normal wages while on furlough with the balance of 10% after the CJRS claim now being funded by the employer. Employers will also continue to pay the national insurance and pension contributions for hours not worked as well as all costs for any hours worked under the Flexible Furlough Scheme.
Further changes will be effective for October claims. Below is a summary of the grants to cover the costs of furlough to the end of the scheme on 31 October 2020 :
These changes should be factored into any decisions regarding the use of flexible furlough and decisions to bring employees back to work, as well as implications for holiday entitlement and timing of any redundancy decisions.
We are here to help so please contact us if you wish to discuss any of the above.