Purpose of note
In this note you can find information related to the new Job Retention Scheme rules ‘furlough rules’ that will be applied from 1 July 2021.
In March 2020, Chancellor Rishi Sunak introduced the Furlough Scheme, a subsidy aimed at helping companies forced to lay off employees because of COVID-19. In September 2020, the UK Government replaced the initial scheme with another scheme the Job Retention Scheme. This scheme has gone through various iterations and extensions.
New level of grant from 1 July 2021
From 1st July 2021 the level of the grant will be reduced. The Government contribution will be reduced to 70% of the hours not worked (up to £2,187.50). Employers will need to cover at least 10% of the wages for hours not worked (up to £312.50). The Government support will decrease month by month until September 2021, which is the last month of the scheme. The scheme is currently scheduled to end 30th September 2021.
You can read about the contributions here.
|May 21||June 21||July 21||August 21||September 21|
|Government contribution||80% up to £2,500||80% up to £2,500||70% up to £2,187.50||60% up to £1,875||60% up to £1,875|
|Employer contribution: NICs and pension||Yes||Yes||Yes||Yes||Yes|
|Employer contribution: wages for hours not worked||No||No||10% up to £312.50||20% up to £625||20% up to £625|
|For hours not worked employee received||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
If you are an employer and, need help to manage the new scheme, feel free to contact us.
Purpose of note In this note you can find informa […]