Changes to the Coronavirus Job Retention Scheme from July 2021

The Coronavirus Job Retention Scheme was extended until 30th September 2021 and the level of grant available to employers under the scheme stayed the same until 30 June 2021. Claims must be made by 14th July 2021.

Changes to the level of grant from 1st July 2021

From 1st July 2021, the level of grant is reduced and employers required to contribute towards the cost their 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 time they spend on furlough.

The following table shows the level of government grant contribution available over the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time.

Wage caps are proportional to the hours not worked.

Employers can continue to choose to top up employees’ wages above the 80% total and £2,500 cap for the hours not worked at their own expense.

PAYadvice.UK 27/6/2021

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