Job Retention Scheme
It was announced in the Chancellor’s March budget that the Government’s Job Retention (Furlough) Scheme has been extended to 30 September 2021. This enables employees to receive 80% of their current salary for hours not worked, up to a maximum of £2,500. The extension sees no changes for employees. Any employee on furlough will continue to receive at least 80% of their current salary for hours not worked.
Employers will have to cover national insurance and pension contributions, but will not be required to pay a salary contribution to furloughed workers from April to June. From July, this changes and employers will have to contribute at least 10% of the salary cost. This increases to 20% of the salary cost in August and September.