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Job Retention Scheme Changes from 1 July 2021

25 Jun 2021

Planned changes to the Coronavirus Job Retention Scheme are due to come into effect from 1 July 2021. From that date, the level of grant will be reduced and employers will be asked to contribute towards the cost of furloughed employees’ wages.

The requirement for employees to receive 80% of their wage (up to a maximum of £2,500) for the hours not worked remains the same, but the government contribution will drop from 80% to 70%, being a maximum of £2,187.50. This means that employers will have to contribute the additional 10% (up to £312.50) themselves, on top of the existing employer pension and national insurance contributions.

The rate of government contribution is due to drop again on 1 August 2021 to 60% and will remain at that level until the planned end of the job retention scheme on 30 September 2021. This means employers will have to contribute the additional 20% (a maximum of £625).

Whether further delays to the lifting of restrictions will result in any extension to the scheme remains to be seen.

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The Employment team at Hay & Kilner can assist with any of your furlough related queries, including preparing for the end of the scheme and life beyond furlough. Please do not hesitate to get in touch.

You can also see all of our Covid updates here.