Coronavirus Job Retention Scheme (CJRS) extended to 30th September 2021

The 2021 Budget has announced the extension of the Coronavirus Job Retention Scheme to 30 September 2021 which is a welcome relief for employees and employers alike

Eligibility for CJRS

For new claims made from 1 May 2021, furloughed employees must have been on their employer’s PAYE payroll on 2 March 2021. The employer must also have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021.

Employers do not need to have previously claimed for employees before 2 March 2021 to claim for periods on or after 1 May.

Changes to CJRS from July 2021

From 1 July 2021, the amount of the grant will be reduced, and employers will be asked to contribute towards the wages of their furloughed employees.

Similarly, to the updates to the CJRS last summer, furloughed employees will continue to receive 80% of their salary for hours not worked, up to a maximum of £2,500 a month but there will be an incremental increase of contributions from employers. Employers will continue to meet the cost of National Insurance payments and pension contributions.

For the month of July, government contributions to furlough salaries will decrease to 70% up to a maximum of £2,187.50 and employer contributions will increase to 10% up to a maximum of £312.50. For the months of August and September, government contributions will decrease further to 60% up to a maximum of £1,875 and employers’ contributions will increase to 20% up to a maximum of £625.

Employers can continue to choose to top up their employees’ wages to 100% but there is no obligation to do so.

If you have any questions regarding the CJRS and furlough leave, or if we can assist in any other way, please contact a member of our team.

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