Updated on 30 June 2021
The CJRS is the UK government's flagship support measure for organisations during the COVID-19 pandemic. It offers grants to cover a proportion of the salaries of furloughed staff. Following the Budget 2021, the scheme has been extended until 30 September 2021.
How much can be claimed: Up to 30 June 2021 employers can claim 80% of furloughed employees' current salary for hours not worked, up to a maximum of £2,500.
From 1 July 2021 the level of grant reduces to 70% of salary for hours not worked and from 1 August 2021 to 60%.
How much do I have to pay the employee: The employee must be paid in accordance with their employment contract (which may be amended by agreement). The employee must be paid at least as much as the gross pay element of the grant received from HMRC.
From 1 July 2021, the level of grant will be reduced, and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
Employer contributions: In addition to paying for all of the costs of hours the employee does work, from 1 July 2021 employers must contribute 10% towards the cost of unworked hours and from 1 August 2021 they must pay 20%. The employer must also bear the total costs of all employers' NIC and the auto-enrolled pension contributions.
Which employees can be claimed for: Employees who are furloughed full or part-time as a result of the coronavirus pandemic. Up until 1 May 2021, only employees who were on payroll prior to 31 October 2020 are eligible. From 1 May, employees who were employed prior to 3 March 2021 will be eligible (i.e. on an RTI report between 20 March 2020 and 2 March 2021).
When will grants be paid: Within six working days of a claim being submitted.
Deadline for claims: Claims have to be submitted within 14 calendar days of the month they relate to, unless this falls on a weekend, in which case the deadline is the next weekday. However, a claim once made can be increased provided it is amended within 28 calendar days of the month it relates to. It is also possible to claim after the deadline if there is a reasonable excuse.
The table below shows the level of government contribution available in the coming months, the required employer contribution and the amount that the employee receives per month where the employee is furloughed 100% of the time.
Wage caps are proportional to the hours not worked. You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.
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May
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June
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July
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August
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September
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Government contribution: wages for hours not worked
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80% up to £2,500
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80% up to £2,500
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70% up to £2,187.50
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60% up to £1,875
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60% up to £1,875
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Employer contribution: employer National Insurance contributions and pension contributions
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Yes
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Yes
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Yes
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Yes
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Yes
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Employer contribution wages for hours not worked
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No
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No
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10% up to £312.50
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20% up to £625
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20% up to £625
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For hours not worked employee receives
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80% up to £2,500 per month
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80% up to £2,500 per month
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80% up to £2,500 per month
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80% up to £2,500 per month
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80% up to £2,500 per month
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