Today, the Goverment has announced that the Coronavirus Job Retention Scheme (CJRS) will be extended until the end of March 2021.
The grants payable under the Scheme will be the same as in August with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500/month and employers asked to cover NI and pension contributions. To be eligible, the employee needs to have been on the employer’s PAYE scheme on or before 30 October. The Government will review employer contribution levels in January based upon economic conditions.
Employers who have not previously used the furlough scheme can benefit from the extended scheme and employees need not previously have been furloughed.
The Chancellor added that the Job Retention Bonus (the £1,000 one-off payment for retained furloughed staff) would be scrapped and that this may be replaced with a new retention incentive, although further details are awaited on this.
We will keep you updated with any further changes to legislation.
If you have any queries, please do not hesitate to contact us.