The Coronavirus Job Retention Scheme (CJRS) has been extended until the end of September 2021.

The CJRS scheme set up to help UK businesses claim for some of their employee’s wages if they have been put on furlough or flexible furlough due of coronavirus (COVID-19) which was due to end in June has been further extended. The scheme pays 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month (with annual salary of £37,500).

However from July 2021 CJRS grants will reduce to cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. The government has advised that employers will need to continue to pay furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. Employers will need to pay the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay. 

From August to September, grants are reduced again to cover 60% of employees’ usual wages up to a cap of £1,875. Employers will need to continue to pay their furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. They also need to continue to pay the associated Employer NI contributions and pension contributions on subsidised furlough.

To claim for periods from 1 May 2021 onwards, eligible employees must have been employed on 2 March 2021 and had a Real Time Information (RTI) submission to HMRC notifying a payment of earnings for that employee by their employer between 20 March 2020 and 2 March 2021.