In the world of HR, the most important thing to come out of the 2021 Budget has to be the extension of the Coronavirus Job Retention Scheme (CJRS), which will be a lifeline for businesses affected by Covid-19. There’s no doubt, the scheme has helped to stem the flow of redundancies, saving thousands of jobs.

Since March 2020 the CJRS has been extended numerous times. With plans for reopening businesses over the next few months, it was confirmed in the March budget, the scheme is to be extended again, this time until 30 September 2021.

Furloughed workers will still get 80% of pay for time not worked, subject to a monthly maximum of £2,500. However, from July 2021, Government contributions will reduce, similar to the way it was planned to phase out last year. Employers will continue to pay employers’ national insurance and pension contributions.

From July 2021

Government contribution of 70% of pay for unworked hours with employer contribution of 10% –  employee still receives 80% of pay up to the cap.

August to September 2021

Government contribution will reduce to 60% with employer contributions at 20% –  employee still receives 80% of pay up to the cap.

Do remember, if you place employees on furlough, this must be in agreement with them, confirmed in writing.  See my previous blogs on Furlough Agreements for more information and, as always, drop us a line if you have any questions.

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