Employers are now required to pay 10% of furloughed employees’ wages, with the Government contribution falling to 70% up to a maximum of £2,187.50 per employee per month.
This change represents a steep rise in employer required contributions and means that for each employee receiving the maximum £2,500 under the Scheme, employers will need to pay £312.50 extra.
In addition, employers also have to continue to pay employer National Insurance Contributions and employer pension contributions.
As the Scheme is due to close soon and employer contributions are set to increase further with effect from 1 October, many employers will be looking to bring their use of the Scheme to an end.
Please contact Alexandria Evans on email@example.com or by telephone on 01904 561 444 if you require any assistance with employment law or HR issues.
If you are worried your business has made mistakes in the uptake and administration of the coronavirus job retention scheme (CJRS) or are facing the prospect of a Furlough Fraud investigation by HMRC, our team of specialist Furlough Fraud Solicitors can offer you tailored legal advice and specialist representation.
Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.