Coronavirus Job Retention Scheme

Written by Leanne Ladds

Aug 22, 2020 - 2 min read

Lady with a mask having a video call with a man in a mask

CJRS continues to provide grants for furloughed employees, but no longer funds employers’ National Insurance (NI) and pensions contributions. Employers now have to make these payments from their own resources for all employees, whether furloughed or not.

What employers need to do from 1 September

• From 1 September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours furloughed employees do not work

• Employers will need to pay 10% of furloughed employees’ wages to make up 80% of their total wages up to a cap of £2,500. The wage cap is proportional to the hours not worked

• Employers will continue to pay furloughed employees’ NI and pension contributions.