Coronavirus Job Retention Scheme: Employers Required to Make Contributions From July

June 9, 2021

Employers will be required to contribute towards the wages of furloughed workers from next month, it has been reminded.

As planned, the Coronavirus Job Retention Scheme (CJRS) will be tapered from July, before closing completely in September.

If you are an employer, here’s what you need to know.

What’s changing?

From 01 July 2021, employers will be asked to contribute towards the cost of furloughed employees’ wages. This will start at 10 per cent in July, before increasing to 20 per cent in August and September.

You must make the required contribution to continue receiving support; furloughed employees must receive at least 80 per cent of their wages, up to a cap of £2,500 per month for the time they spend on furlough.

However, you can choose to top up employees’ wages above the 80 per cent total and £2,500 cap.

When does the scheme close?

The scheme has been extended until 30 September 2021. After this date, all employees must be asked to return to work.

How can I apply for funding?

Claims for furlough days in May must be made by 14 June 2021, while claims for furlough days in subsequent months must be made by the 14th day of the following month. Click here to access the online application portal.

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