From 1 August 2021, the Coronavirus Job Retention Scheme (CJRS) grant will be reduced, and employers will be asked to contribute further towards the cost of furloughed employees’ wages.
To be eligible for the grant, employers must continue to pay furloughed employees 80% of their wages, up to a cap of £2,500 per month, for the hours they do not work. Employers also continue to be able ‘top-up’ employee wages above the 80% total at their own expense.
The table below highlights how the Government level of contribution decreases in the coming months, up until the end of the furlough scheme on 30 September 2021:
|Government contribution: wages for hours not worked||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: employer National Insurance contributions and pension contributions||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 receives||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|
Can employees be furloughed who are self-isolating or on sick leave?
A common question our payroll team has been asked recently is ‘can I furlough an employee who is self-isolating?’. Unfortunately, the CJRS is not intended for short-term absences from work due to sickness or self-isolation – this should not be a consideration when deciding whether to furlough an employee.
However, if there is a genuine business reason to furlough an employee who is currently off sick, then you are eligible to do so. In this case, the employee should no longer receive sick pay and instead be classified as a furloughed employee.
If an employee is clinically extremely vulnerable, or at the highest risk of severe illness from coronavirus, it is at the employer’s discretion as to whether the employee is furloughed. In these cases, an employer does not need to be facing a wider reduction in demand or be closed to be eligible to claim CJRS for these employees.
For a more information on which employees you are able to furlough, click here.
Get in touch
For advice tailored to your situation, or support with submitting CJRS claims, please speak to your usual PM+M representative, or get in touch here email@example.com.