With effect from 1 July 2021, the Government subsidy under the Coronavirus Job Retention Scheme ("CJRS") has changed. Under the CJRS, employees can be placed on furlough for reasons related to COVID-19.
Previously, the employee was paid at least 80% of their normal wages for any hours not worked, up to a maximum of £2,500 (pro-rated for any hours worked). Until now, the Government has covered the payment of 80% of wages (up to the maximum £2,500). But from 1 July 2021, the Government subsidy has dropped to 70% of wages (up to a maximum of £2,187.50). For the months of August and September, the Government subsidy will drop to 60% (up to a maximum of £1,875).
Employers must now ‘top up’ the subsidy so that employees on furlough continue to receive at least 80% of their normal wages for any hours not worked during furlough (up to a maximum of £2,500).
The Government has previously announced that the CJRS will end on 30 September 2021.