July 1, 2021
In order to continue to be eligible for the scheme, employers must continue to pay their furloughed employees 80% of their wages per month, up to the cap of £2,500, for the time they spend on furlough.
These are the changes to the scheme:
From 1 July 2021, the level of grant will be reduced and employees will be asked to contribute to the cost of their furloughed employee’s wages
The Government will continue to contribute to furloughed wages, but this will now be 70% of an employee’s usual wage up to £2,187.50 per month
Employers will continue to make the National Insurance and pension contributions
Employers will be required to ‘top-up’ the additional 10% up to 312.50 per month
These changes ensure that employees do not lose out by being furloughed and increases the burden on the employer to maintain the shortfall in the payment. As always, employers may continue to top up employee wages above 80% at their own expense.
The Government’s contribution is due to decrease further to 60% of an employee’s wages and the employer’s contribution will increase to 20% as of 1 August 2021.
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