Covid-19 furlough changes – July and August

July and August changes to CJRS

From 1 July 2021, employers will top up employees’ wages by 10% to make sure they receive 80% of wages (up to £2,500). The government will contribute less towards these grants.

From 1 August 2021, the government will pay 60% of wages for furlough employees up to £1,875, and employers will make of the remaining 20% up to 80%.

Employers using the scheme will now be expected to make up a 10% difference of CJRS payments. Previously the government paid 80% of wages up to 2,500, however from July this will reduce to 70%. Employers will make up the difference, so staff can receive their promised 80% of wages. From August and September, employers will be expected to start contributing an even larger percentage of 20%, to signal a gradual easing of government support before the scheme fully closes.

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