Coronavirus Job Retention Scheme (CJRS) update

Chancellor, Rishi Sunak, announced the much-awaited details regarding the CJRS. Here’s a summary of the key points:

1. The last day Employers will be able to put Employees on “furlough” would be 10 June 2020.
2. “Flexible furlough” will be introduced from 1 July 2020. This means employees would be able to work part-time and also be furloughed part-time. Businesses will have the flexibility to decide how the time would be split.
3. Employers will have to pay Employee’s national insurance contributions and pension contributions from 01 August 2020. They will no longer be able to reclaim the through the CJRS.
4. The Government will only reimburse 70% of the salary, up to a maximum of £2,190 per month, from 1 September 2020. Employers will be required to top up 80% or more, depending on what the Employer agreed with the Employee.
5. The Government will reimburse 60% of the salary (up to a maximum of £1,875 per month), from 01 October 2020. Employers will continue having to top up to 80% or more.
6. The CJRS closes on 31 October 2020.