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COVID-19: Changes to Furlough Scheme

Chancellor Rishi Sunak has tonight announced the following changes to employer contributions to furloughed employees’ pay under the Coronavirus Job Retention Scheme (“CJRS”)

June and JulyNo change to employer contribution
AugustEmployers to pay auto-enrolment pension contributions and National Insurance Contributions Government will continue to pay up to 80% of
furloughed employees’ wages (capped at £2500 per month
SeptemberGovernment contribution – 70%
Employer contribution – 10%
OctoberGovernment contribution – 60%
Employer contribution – 20%
NovemberCJRS closes

Employees’ will continue to receive 80% of their wages (capped at £2500 per month) throughout the duration of the CJRS.

Flexible Furlough
From 1 July 2020 employees can return to work on a part time basis and receive furlough pay for the days the employer has no work for them. For example, a full time employee could work for two days and be paid as normal by the employer for those days and then be on furlough and receive payment under the CJRS for the other three days in the week.

Ending existing furlough arrangements
The existing furlough arrangements will end on 30 June 2020. Employers need to put employees new to the furlough scheme on the existing full time furlough scheme by 10 June 2020 so that they have the 3 weeks minimum furlough period by the time the scheme closes.

We anticipate further guidance and will keep you updated.

If you need assistance, please contact the CG Team.