As of the 1st September, changes will be made to the Coronavirus Job Retention Scheme. Initially, employers were able to claim back 80% of an employee’s usual wage up to a cap of £2,500. However, from September, this will be reduced to 70% and up to a cap of £2,187.50 per month for the hours furloughed employees do not work.
Though the claim percentage has seen a reduction, employers still need to pay furloughed employees at least 80%, up to the cap of £2,500 per month. Meaning an employer will have to fund the difference in what can be claimed as a grant and what is processed for payment to the employee.
Additionally, the caps are proportional to the hours not worked. E.g. if an employee is furloughed for half their usual hours in September, employers are entirely to claim 70% of the employee’s usual wages for the hours they do not work, up to £1,093.75 (half of the total wage cap).
If you are struggling with the pay regarding the Coronavirus Job Retention Scheme, talk to us today.