Changes to the Coronavirus Job Retention Scheme From 1 July 2021

For further information on the CJRS, please read our previous article.

What Is Changing and How Does This Affect Employers?

Firstly, in order to continue to be eligible for the CJRS, employers will need to continue to pay furloughed employees 80% of their wages, up to a cap of £2,500 per month, for the time they spend on furlough.

However, from 1 July 2021, although the employee will continue to receive 80% of their salary in respect of hours not worked, the following contribution level changes will be applicable:

• 1 July 2021 to 31 July 2021 - the Government will contribute 70% up to £2,187.50 of the employees' wages for hour not worked. Employers will then have to contribute the remaining 10% up to £312.50.
• 1 August 2021 to 31 August 2021 - the Government will contribute 60% up to £1,875 of the employees' wages for hours not worked. Employers will then have to contribute the remaining 20% up to £625.
• 1 September 2021 to 30 September 2021 - the Government will continue to contribute 60% up to £1,875 of the employees' 80% wages for hours not worked. Employers will then have to contribute the remaining 20% up to £625.

Employers can also choose whether to top up their employees’ wages above the 80% total and £2,500 cap at their own expense.

If you have any further questions on the CJRS, please contact Michael Halsey in our Employment Law team on 07554 432829, or complete the form below.