Are you aware of the further changes to the Furlough Scheme from 1st September?
As the Coronavirus Job Retention Scheme (CJRS) continues to wind down towards its closure at the end of October, important changes are being introduced from 1st September.
What employers need to know
In the scheme’s penultimate month, employers must still pay 80% of furloughed employee’s gross monthly wages, but the grant will only cover 70% (up to a cap of £2,187.50).
Employers will need to fund the remaining 10% difference (up to a cap of £312.50) to ensure a total payment to each furloughed employee covering 80% of wages (capped at £2,500).
Furloughed employees’ National Insurance and pension contributions are still the employer’s responsibility, as per the changes made from August 1st.
What to do next
As with any of the Coronavirus support schemes, if you’d like your questions answered or have concerns as to what this change means for you and your business, please get in touch with our team on 01823 65 32 50, or firstname.lastname@example.org
(Keep an eye out for further developments on 1st October, where the grant will provide 60% of a furloughed employee’s gross monthly wages capped at £1,875).