Changes for Furlough Claim Recipients

furlough pay

The Coronavirus Job Retention Scheme that was introduced at the start of the pandemic, will be extended until the 20th September 2021. 

Until the 30th of June, money provided through grants for employers will stay the same.

What’s changed?

From July 1st 2021, employers will be required to contribute towards the cost of workers’ wages. In addition to this the level of grants provided to employers will be reduced. Those who require grants must continue payments to furlough claim recipient employees of up to 80% of their wages. These payments to employees will be capped depending on the amount of hours not spent working.

From July 1st, employers will be expected to pay National insurance and pension contributions  between May and September. 

Government contributions for furlough claim recipients – (May – Sept 2021)

  • May – 80% (up to £2500)
  • June – 80% (up to £2500)
  • July – 70% (up to £2187.50)
  • August – 60%( up to £1875)
  • September – 60%( up to £1875)

Employers will not be expected to pay contributions towards hours not worked until July. From July onwards they will be expected to pay 10% (up to £312.50) then up to 20% for August and September (up to £625).

Between the months of May and September employees, with a furlough claim granted by their employer, can still expect to receive the full 80% payment for time not worked. However, employers may pay employees more if they wish but this must be done so at their own expense. 

For more information regarding Furlough pay or for more HR advice, contact us.