Chancellor, Rishi Sunak, announced the much-awaited details regarding the CJRS. Here’s a summary of the key points:
- The last day Employers will be able to put Employees on “furlough” would be 10 June 2020.
- “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.
- 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.
- 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.
- 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.
- The CJRS closes on 31 October 2020.
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