Changes to the Coronavirus Job Retention Scheme from July 2021

01.07.2021
The Marketing Team
COVID-19, Payroll

Changes to the level of grants implemented on 1 July 2021 for the Coronavirus Job Retention Scheme.

The level of grant was reduced from 1 July 2021 and employers were asked to contribute 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 time they spend on furlough.

The following table shows the level of government contribution available in 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:

JulyAugustSeptember
Government contribution: wages for hours not worked70% up to £2,187.5060% up to £1,87560% up to £1,875
Employer contribution: employer National Insurance contributions and pension contributionsYesYesYes
Employer contribution wages for hours not worked10% up to £312.5020% up to £62520% up to £625
For hours not worked employee receives80% up to £2,500 per month80% up to £2,500 per month80% up to £2,500 per month
source: www.gov.uk

You can continue to choose to up your employees' wages above the 80% total and £2,000 cap for the hours not worked at your own expense. 

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