With effect from today (1st September 2020), the Government’s Coronavirus Job Retention Scheme has changed so that employers now need to contribute more towards the wages of their furloughed staff.

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 alex.evans@luptonfawcett.law 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.

Get In Touch Today!

Get In Touch Today!

Please complete this form to make an enquiry and we will get back to you as soon as we can.

Remember you can still call us on 0333 323 5292 or email us at law@luptonfawcett.law

  • This field is for validation purposes and should be left unchanged.