On 3 March 2021, the UK government confirmed the continuation of the Coronavirus Job Retention Scheme (CJRS) through the end of September 2021. The CJRS was due to end on 30 April 2021 and has, so far, supported more than 11.2 million employees since its inception in March 2020.
The extension goes beyond the United Kingdom’s timetabled “road map” out of lockdown from 21 June 2021 and, in light of this, the government has introduced additional employer contributions in the final months of the CJRS.
DETAILS OF EXTENDED CJRS
The CJRS will be available for an additional five months, from May through September 2021.
Employees will continue to receive the following:
- 80% of their salary for hours not worked (up to a maximum of £2,500), paid by the UK government
- National Insurance and pension contributions (for all of their salary, whether the hours are worked or not), paid by their employer
The UK government will require further contributions to be made by employers from July. In addition to National Insurance contributions and pension costs, employers will need to contribute toward employees’ furloughed salaries at the following rates:
- 10% in July
- 20% in August
- 20% in September
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May
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June
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July
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August
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September
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Government contribution: Wages for hours not worked
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80% up to £2,500
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80% up to £2,500
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70% up to £2,187.50
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60% up to £1,875
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60% up to £1,875
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Employer contribution: Employer National Insurance contributions and pension contributions
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Yes
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Yes
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Yes
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Yes
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Yes
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Employer contribution wages for hours not worked
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No
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No
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10% up to £312.50
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20% up to £625
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20% up to £625
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For hours not worked, employee receives
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80% up to £2,500 per month
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80% up to £2,500 per month
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80% up to £2,500 per month
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80% up to £2,500 per month
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80% up to £2,500 per month
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Employers can choose to top up their employees’ wages above the 80% total and £2,500 cap for the hours not worked at the employers’ own expense.
The additional contributions represent a gradual phasing out of the CJRS, which, during this five-month extension period, is estimated to cost the government at least £10 billion more.
EMPLOYER AND EMPLOYEE ELIGIBILITY
All employers with a UK bank account and UK PAYE schemes are eligible for the CJRS.
All employees who have been on their employer’s PAYE payroll on or before 30 October 2020 can qualify for the CJRS for periods ending on or before 30 April 2021. For periods on or after 1 May 2021, the same applies for employees who were employed on or before 2 March 2021.
Trainee solicitor Christina Lewes contributed to this LawFlash.
[View source.]
