The scheme has seen employee’s wages, together with the associated employer NIC contributions and auto-enrolment pension contributions being subsidised by the government up to a prescribed limit.
There are various changes to the scheme from 1 August 2020 – employers will need to be aware of these to ensure that their claims are accurate.
From 1 August, the government will continue to pay 80% of wages up to the £2,500 cap for the hours that an employee is furloughed. However, the employer will be responsible for the Employer’s NICS and pension contributions.
There are further changes set for September when the government will subsidise 70% of wages – up to a maximum cap of £2,187.50 for the hours that the employee is on furlough. Employers will be required to top up their employees pay to 80% of wages, up to £2,500. Employers will also be responsible for the Employers NIC and pension contributions.
For October, the grant is set to drop to 60% of wages, up to a cap of £1,875. Again, the employer is responsible for topping up wages to 80% and the associated costs.
The Coronavirus Job Retention Scheme will close on 31 October.