Changes to the Coronavirus Job Retention Scheme (CJRS)

Date: 05/07/21

Changes to the Coronavirus Job Retention Scheme (CJRS)

Up until the end of June 2021, employers could claim a grant worth 80% of each employees’ wage costs, up to £2,500 per month for hours not worked. However, as announced in Budget 2021, the size of the grant payable to employers will be reduced as restrictions are eased.

 

As of 1 July 2021, the Government’s grant will reduce to 70% of furloughed employees’ wage costs for their unworked hours at a cap of £2,187.50. Pay for furloughed employees must remain at a minimum of 80% at a cap of £2,500 which means that the employer must contribute 10% up to £312.50 themselves. Further changes to the scheme will continue into August.

 

From 1 August 2021, until the scheme ends on 30 September, the Government’s grant will reduce a final time to 60% of furloughed employees’ wages for their unworked hours at a cap of £1,875. With the 80% rule still intact, employers will need to contribute 20% to staff wages up to £625. Therefore, from July through to the end of September, employers will have to cover a portion of the employee’s actual wages, as well as the national insurance and pension contributions.


Lorraine Wilkinson

Author: Lorraine Wilkinson

​Lorraine joined Scott & Wilkinson in 2001 bringing with her over 20 years payroll experience. As payroll manager, she oversees the smooth running of the firms payroll bureau which includes all aspects of day to day payroll. Lorraine is...

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