Job Retention Scheme - Key Dates & Info
The rules are changing for the government's job retention scheme, and the deadline for placing employees on furlough is approaching. Read on to understand the key dates and the implications of the new guidelines.
Changes to the Scheme
June & July - the government will continue to contribute 80% of wages for furloughed employees, up to a cap of £2500. The government will also pay all pension and national insurance contributions for the hours an employee does not work. Employers will be required to pay all costs for any hours worked by employees.
August - the government will continue to contribute 80% of wages, up to a cap of £2500. Employers will now be required to pay employer national insurance contributions and pension contributions.
September - the government contribution will decrease to 70% of wages up to a cap of £2187.50 for the hours an employee does not work. Employers will be required to pay national insurance and pension contributions. Employers will now also be asked to pay the remaining 10% of wages, to make up the 80%, up to a cap of £2500.
October - the government contribution will decrease again to 60% of wages up to a cap of £1875 for the hours an employee does not work. Employers will pay all national insurance and pension contributions and 20% of wages to make up the 80%, capped at £2500. The scheme will end on 31st October.
10th June – this is the last day that you can furlough an employee who has not previously been placed on furlough
12th June - The Government will release full guidance on the rule changes being made to the Coronavirus Job Retention Scheme.
30th June - The scheme will close to anyone who hasn’t been furloughed for 3 weeks. This means you will only be able to claim for employees after 30th June if they have been furloughed for a full three-week period at any time before this date.
1st July - the rule changes will come into effect
31st July is the deadline for all claims. This applies to both employees furloughed for the first time and those you have previously furloughed and claimed for.
From 1st August, you will need to contribute towards the wage costs of your furloughed employees.
The scheme ends on 31st October 2020.