Coronavirus Job Retention Scheme - Update 29 May 2020
The Chancellor Rishi Sunak has this evening (29 May) announced updates to the Furlough Scheme as follows:
The scheme as it stands i.e. the government paying 80% of employee’s wages up to a maximum of £2,500 per month will continue throughout June and July.
From 1 August the government will continue to pay 80% of employee’s wages and employers will only be asked to cover National Insurance and Employer Pension Contributions.
Starting in September the government’s contributions will gradually phase out with them paying 70% of employee’s wages and employers being asked to contribute 10% to ensure that staff continue to receive 80% of their salary.
In the final month of October, the government will contribute 60% of employee’s wages with employers contributing 20%.
The government have also put in place a flexible furlough scheme allowing employers to bring furloughed staff back on a part time basis from 1 July, a month earlier than originally planned.
For employers who want to place new employees on the current scheme, they will need to do so by 10 June to allow time to complete the minimum furlough period.
You can read the full Government announcement here.