The Coronavirus Job Retention Scheme (CJRS) has been one of the Government’s defining fiscal policies during the COVID-19 pandemic. CJRS has been commonly known as the furlough scheme since it began last year. Millions have had their wages paid by the Government in recent months, as businesses have suffered significant disruption due to coronavirus.
With the scheme first introduced in March 2020, the furlough scheme has now been in place for more than a year.
Whereas previously employees could not work at all while on furlough, the scheme has become more flexible in recent months.
Employers are now able to furlough an employee for any amount of time and for any work pattern.
During April and May, the Government will pay 80 percent of wages for hours not worked, subject to a cap of £2,500.
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But the Government will only pay 70 percent of wages for hours not worked, capped at £2,187.50 per month, for the month of July.
In August and September, the Government contribution for hours not worked will decrease to 60 percent, capped at £1,875 per month.
This means the employer will be required to top up wages to 80 percent.
Throughout May to September, employers will be required to pay the usual National Insurance and pension contributions for their employees.
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